Home / Political News / Current News / Dairy entrepreneurs object to the FDI in Dairy sector
Machhapuchre Bank

Dairy entrepreneurs object to the FDI in Dairy sector

By Our Reporter
Dairy entrepreneurs have urged the government not to open gates for Foreign Direct Investment (FDI) in the dairy sector, stating that the country was on the way to becoming self–reliant in dairy products.
The dairy industries’ concern came in response to the Foreign Investment and Technology Transfer (FITT) Act Amendment Bill 2019 forwarded by the Ministry of Industry, Commerce and Supplies.
Except poultry farming, the bill has proposed to open FDI for all small and cottage industries including livestock, fish farming, bee farming, and dairy industries. Dairy entrepreneurs have said that this initiative of the government would discourage domestic industries.
They said Nepal the dairy industries was able to meet the national demand, the government’s decision to amend the FITT Act has come as a discouragement for them.
Likewise, Araniko Raj Bhandari, president of Nepal Dairy Udyog Sangh, said that Nepali dairy industry did not need FDI.
Currently around 500,000 farmers are involved in this sector and there are 1,850 cooperative organizations across the country, with a total investment of Rs 30 billion and 20,000 direct employees.
According to Bhandari, the current demand for milk is 92 liters per year per person and the country produces 72 liters per person per year, fulfilling 80 percent of the market demand.
It was argued that government has prepared to allow Indian dairy company Amul to establish their company in Nepal.

Check Also

Pande’ putting all efforts to cement bilateral bonds

By Our Reporter The Honorary Consul General of Italy in Kathmandu Pratima Pande’ has said …