--By Siromani Dhungana

 

The dairy industry, according to entrepreneurs, will become the most-sought after business if the government ensures policies favourable for investment from the corporate sector.

 

There is a huge demand for milk in the domestic market, says president of the Dairy Industries Association, Pradeep Maharjan, adding that domestic market has been witnessing a shortfall of around half a million litres of milk every day.

 

Investment from the corporate sector is a must to end the existing gap between demand and supply of dairy products, he opined adding that the government should facilitate the entire process from cow farming to marketing of dairy products. 

 

Currently, corporate sector is engaged only in production phase, he informed. “Around 30 dairy industries are involved in milk business and most of them sell pasteurized pack in the market. The need is, however, that milk production should be increased and government should lure massive investment from the big investors.”

 

 He indicated two areas where the government should immediately take action to invite corporate sector in the entire milk production business. First, the government should introduce policy for contract farming whereby big corporations can invest in cow farming to run their own dairy industry. On the other, the government should facilitate the land leasing process for big corporate houses.

 

Corporate investment is not possible unless the government can ensure security of investment, he added.  

 

Director at Nepal Dairy Development Board, Dr Balak Chaudhary blamed the government’s dillydally in regulation of the dairy industry. “The Dairy Development Corporation, a government entity which is a competitor in the dairy industry, is also playing the role of a regulator at present,” he said, adding that the government should dare to establish a separate and powerful regulatory body to attract more investment in this sector. 

 

There has not been a scientific study on the demand for milk and milk products, he revealed. 

 

Around 800 diary manufacturing units have been operating in the domestic market at present. Of them, very few have given their products corporate form.