Dairy farmers in Dang struggle as milk production costs rise and farm-gate prices remain low

Dang, October 25, 2026 — Dairy farmers in Dang are struggling to earn adequate returns on their investment and labour as production costs rise while the prices they receive for raw milk remain comparatively low.

Farmers say the gap between the price paid to producers and the amount charged to consumers points to a lack of transparency in the milk supply chain. They are calling for clear information on costs and profit margins from production to retail, along with fair prices that encourage dairy farming.

Gopal Khanal, who operates the Green Laxmi Cow and Buffalo Farm in Rampur, Ward No. 2 of Ghorahi Sub-Metropolitan City, produces more than 100 litres of milk daily.

He sells around 65 litres to dairy businesses and distributes the remainder directly to households. Khanal said dairy businesses pay him no more than Rs 75 per litre for buffalo milk and around Rs 65 per litre for cow milk.

However, dairy businesses sell milk to consumers for as much as Rs 100 per litre, he said. Although cow and buffalo milk have different production costs, consumers generally pay similar prices for both types, according to Khanal.

“Farmers are not even involved in price determination,” he said.