The Central Dairy Cooperative Association has reported a surge in the illegal export of milk and butter to India via border points in Sarlahi, Parsa, and Rupandehi. Vice Chairman Bhagirath Timilsina said smugglers are exploiting higher Indian prices, where milk rates now exceed Nepal’s average of Rs 90 per liter. The Dairy Development Corporation confirmed its butter stock has halved, from 800,000 kg to 400,000 kg. Despite Nepal producing 7.5 million liters of milk daily, authorities warn that unregulated cross-border trade is affecting domestic supply chains and formal collection centers.
