Buffalo Farmers to Get 50% Subsidy

Buffalo farmers in Nepal will get a 50 percent subsidy following the introduction of a new procedure to run programmes for promoting organised buffalo farming in order to expand meat exports.

The Ministry of Agriculture and Livestock Development said the procedure is designed to encourage structured production, maintain quality standards, and strengthen livestock resource management, tapping into Nepal’s growing potential in the meat and meat-product export sector.

Deepak Kumar Kharal, Secretary at the ministry, said the programme will support farmers in multiple areas, including purchasing and transporting calves, constructing or upgrading sheds, managing feed, acquiring machinery and equipment, and accessing veterinary services.

“The government will cover up to 50 percent of the total proposed cost for purchasing and transporting calves,” the procedure states. “Farmers must buy animals from government or private breeding centres where available and ensure livestock insurance at the time of purchase.”

Earlier this year in July, the Department of Industry approved a foreign direct investment (FDI) of Rs 20 billion to facilitate buffalo meat exports to China.

Nepal’s Himalayan Food International and China’s Shanghai Ziyan Food Company are jointly developing a state-of-the-art slaughterhouse in Sindhuli to process buffalo meat for export. This follows a memorandum of understanding (MoU) signed in December 2024, which aims to export processed buffalo meat worth $1.5 billion annually to China.

Under the agreement, Himalayan Food International plans to export 2.7 million metric tonnes of processed meat annually in the first phase. The MoU also outlines the construction of a fully automated slaughterhouse.

This initiative is built on a bilateral protocol signed during former Prime Minister KP Sharma Oli’s visit to China, which established formal trade channels for processed buffalo meat between the two countries.

Navin Kumar Sharma, Chairman of Himalayan Food International, said construction of the slaughterhouse in Sindhuli is scheduled to start in December 2025 and is targeted for completion by June 2026. Of the total $200 million (Rs 27.19 billion) planned investment, Rs 300 million has already been spent on land acquisition. Sharma said the remaining investment will come from the Chinese partner company to fund infrastructure construction.

A Chinese team is currently in Nepal to begin groundwork for the project. Sharma added that the government’s new livestock procedure has bolstered confidence among the Chinese partners.

“The government’s policy will benefit not only farmers but also companies like ours, as our own buffalo production will not be sufficient to meet the factory’s demand,” he said. “With the government covering 50 percent of farmers’ costs, we also plan to contribute, although the extent is yet to be finalised.”

The Ministry of Agriculture and Livestock Development said the effective implementation of the procedure is expected to generate jobs in rural areas, attract further investment in livestock farming, increase foreign currency earnings, and directly support national economic growth.