The stock of dairy products has increased due to the decline in consumption. With the addition of powdered milk and butter stock worth around Rs 3.5 billion, the total stock of dairy products has reached more than Rs 9.41 billion within a month. According to the information provided by the Dairy Development Board, there was a stock of powdered milk and butter worth Rs 6 billion a month ago.

The consumption of milk has decreased due to the economic recession while the production has increased. Therefore, the stock is increasing. Acting Executive Director of the Board Balak Chaudhary said that the Dairy Development Corporation (DDC) has stock of powdered milk and butter worth Rs 400 million, Dairy Industry Association has stock of Rs 7.6 billion and Nepal Dairy Association has stock of Rs 1.41 billion.

According to Chaudhary, milk production usually increases from mid-September to February. However, this year, production had increased since May. Lately, the increase in milk production has started ahead of the usual time due to the farmers’ preference in rearing advanced breeds of cattle and the initiative shown by the local and provincial governments in milk production, says Chaudhary.

"Increase in milk production is a positive development. However, consumption of milk products is not in the same proportion. Under normal conditions, about 70 million liters of liquid milk is produced every day in Nepal," he said.

Until five months ago, the dairy industries were seeking permission to import dairy products from India due to shortage in the domestic market. However, within a short span of time, there is excess of milk products. Stakeholders say that it is a matter of concern for the country’s dairy sector.

Prahlad Dahal, president of Nepal Dairy Association, says that while the income of the consumers is stable, the purchasing power has decreased and therefore the consumption has also decreased.