Nepal Considers Importing Specific Dairy Products from India
During the recent India-Nepal Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Combat Unauthorised Trade, held in Kathmandu on January 10-11, 2025, India raised concerns regarding challenges faced by its milk exporters in accessing the Nepali market. In response, Nepal agreed to consider facilitating imports of specific dairy products not sufficiently produced domestically, such as whey and cheese.
This development follows Nepal’s earlier suspension of dairy imports in February 2024, aimed at protecting its domestic dairy industry, which led to informal pressures from India to reopen imports. The suspension had also resulted in India halting the issuance and renewal of the Bureau of Indian Standards (BIS) certification for various Nepali exports, including cement, footwear, and plywood, affecting bilateral trade relations.
The IGC meeting also addressed other trade-related issues, including the review of the Treaty of Transit and the Treaty of Trade, proposed amendments to existing agreements, harmonization of standards, and the development of trade infrastructure, such as the electrification of the Raxaul-Birgunj rail line. Additionally, discussions covered mutual market access, intellectual property rights, and customs duties.
At Nepal’s request, India agreed to apply maximum axle weight limits for Nepali cargo vehicles in transit through the Kakarbhitta (Nepal)–Banglabandha (Bangladesh) route via Phulbari (India), aligning with Indian road transport regulations. Furthermore, India informed Nepal that Sal seeds and Chayote have been included in its Plant Quarantine Order, and accepted Nepal’s request to include Jatamasi root extract, Sugandhkokila berry extract, Sugandhwal rhizome extract, and Timur berry extract in India’s list of processed plant products.
These deliberations reflect ongoing efforts by both nations to strengthen trade relations, address mutual concerns, and enhance economic cooperation. The consideration to import specific dairy products from India signifies a step towards resolving trade tensions and promoting bilateral trade.
