Nepalese Diaspora Returns Home to Boost Dairy Farming Amid Policy Changes

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Nepalese workers returning from the Middle East are investing in dairy farming due to local policy changes. Municipal initiatives, such as guaranteed monthly payments for milk, have made dairy farming more attractive. This shift is part of a broader trend as Nepal's cattle farming sees a decline.
Nepalese Diaspora Returns Home to Boost Dairy Farming Amid Policy Changes

Many Nepalese who previously worked abroad are now turning to dairy farming as a viable business opportunity in their homeland. The Manahari Rural Municipality in Nepal has implemented a policy that guarantees monthly payments to farmers for milk, boosting the local dairy industry. According to Ram Mani Neupane, a former migrant worker, this policy has been pivotal in his decision to return and invest in cattle farming. Neupane manages four cows that produce approximately 50 liters of milk daily, earning him a gross income of around 100,000 Nepalese rupees per month.

The Central Statistics Office's 2021 National Agricultural Census indicates that the number of households engaged in cattle farming has decreased significantly, from 22.81 lakh families in 2011 to 17.8 lakh in 2021. Despite this overall decline, specific local policies have encouraged growth in certain areas. In Manahari's ward number one, 270 farmers supply about 3,200 liters of milk daily to a local collection center, which distributes payments totaling about 6.8 million Nepalese rupees monthly to farmers. This system has increased milk production from 1,200 to 3,200 liters per day.

Returning migrant Sagar Khanal invested 1.7 million Nepalese rupees in a dairy farm with 30 cows, generating an income of over 3.5 lakh rupees monthly. After expenses, he saves approximately 150,000 rupees. Farmers in the region are adopting modern farming techniques, such as using cow mats, dust nets, and automated systems for milk quality checks, to enhance productivity. The Manahari Rural Municipality also supports farmers by providing veterinary services and distributing necessary medicines.

The local government's proactive policies have not only improved the livelihoods of returning migrants but have also made the dairy sector more appealing amid a national decline in cattle farming. These developments illustrate a significant shift in Nepal's agricultural landscape, driven by targeted local interventions.


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