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A study has shown that informal milk is sold more than formal milk in major cities including the Valley. A study conducted by the Dairy Industry Association has shown that the government has also lost revenue as the dairy industry has been killed due to the flourishing of the informal sector.
According to Niranjan Shrestha, the vice president of the association, the study conducted in Kathmandu Valley, Biratnagar and Pokhara showed this. He said that 465,000 liters of milk are sold in the valley, 60,000 liters in Biratnagar and 40,000 liters in Pokhara through the informal sector. He claims that the government has lost 2 billion in annual revenue from the three cities.
Shrestha said that 280,000 liters are sold in the valley, 24,000 liters in Pokhara and 20,000 liters in Biratnagar through the formal sector. Farmers sell 50,000 liters directly to shops and consumers in the valley. He said that 8,000 liters are sold in Pokhara and 12,000 liters in Biratnagar.
The dairy industry has invested about 30 billion in the milk sector. From this, the formal sector generates 3 billion in annual revenue. But 6 billion in revenue has been lost from the informal sector,' Shrestha said, 'If the informal sector can be formalized, the investment in the dairy industry will increase by another 20 billion. Now 72 lakh liters of milk is produced per day, of which 3.6 lakh liters of milk is consumed at the farmers' homes.'
3.6 lakh liters are sold in the market. Of that, 1.2 million liters are sold through the formal sector. 1.8 million liters go to the market from the informal sector. Shrestha said that 6 lakh liters are directly supplied to the market through farmers. The quality of milk sold from the informal sector is not tested. Experts say that there is no packaging, so that consumers are also cheated.
Imports of dairy products are decreasing, exports are increasing
Although the import of dairy products has decreased in ten years, the export has increased, according to government data. In the financial year 2071/72, dairy products worth 2.9 billion were imported. In 2080/81, imports fell to 1.5 billion. Looking at the export figures, in 2071/72, exports were worth 47 crores. In 2080/81, exports increased to 3.53 billion.
Compared to 2079/80, exports have decreased by 10 million, but there has been a gradual improvement compared to the decade. Exports can be further increased, for that the cost should be reduced by Rs 40 per litre. Farmers should be subsidized on the basis of quality. The productivity of milk should be increased," Vice President Shrestha said, "Government should take initiatives to export powdered milk by treating private and government institutions equally. If the informal sector can be brought into the formal sector, exports will increase further.
