Agriculture and Livestock Development Minister Ramnath Adhikari has announced that the government will now focus on converting surplus milk into powder as a bid to resolve the long-standing issue of ‘milk holidays’ (when dairies do not purchase milk from farmers) in Nepal’s agricultural sector.

This move aims to tackle the recurring problem faced by farmers, particularly during the period from August to October when milk production increases, making it difficult for businesses to purchase all the milk from farmers.

Speaking at the “Chitwan Chintan: Exploring Chitwan’s potential, problems, and solutions” event organised by Kantipur Media Group on Thursday, Minister Adhikari emphasised his commitment to prevent milk holidays in future.

During the second session of the event, titled “Farmers’ issues at the heart of agriculture,” Adhikari acknowledged the government’s past failures in managing milk surpluses by converting them into powder. “We have not been able to efficiently turn excess milk into powder for later use. I want to assure you all that the government is now moving forward with a plan to process excess milk into powdered milk to avoid any future milk holidays,” he stated.

The minister also admitted that while he initially aimed to prevent the conditions leading to milk holidays, he has since adjusted his stance. “From mid-August to mid-October, milk production increases significantly, and we reach a situation where we have to stop buying milk from farmers,” Adhikari explained, adding that such circumstances have forced the imposition of milk holidays.

Adhikari criticised the current system where a state agency buys milk from farmers on credit, sells it for a profit of Rs30–35 per litre in cash, and yet fails to pay the farmers promptly. “It’s disheartening that farmers are left without payment while consumers are charged in cash. How can my words carry weight in such a situation?” he lamented. However, he assured that the Ministry of Agriculture is now quite conscious to prevent such malpractice in the future.

Chitwan alone produces 350,000 litres of milk daily, with 40,000 farmers engaged in the dairy business and 110 dairy cooperatives operating in the region.