The Nepal Dairy Association (NDA) has welcomed the monetary policy for the fiscal year 2083/84 announced by Nepal Rastra Bank, describing it as a positive step for agriculture, livestock, dairy, and agriculture-based industries.

In a statement issued by Association President Prahlad Dahal, the NDA said the policy emphasizes productive sector lending, concessional financing, expanded credit for small and medium enterprises, agricultural value chains, food processing, cold storage facilities, warehousing infrastructure, and import-substitution industries.

According to the Association, the dairy sector plays a vital role in Nepal's agricultural economy, food security, rural employment, and the livelihoods of millions of farming families. It welcomed provisions encouraging greater investment in productive sectors, increased lending to agriculture and dairy industries, loan rescheduling and restructuring, digital financial access, and green financing.

However, the Association stressed that the effective implementation of these policy measures will be crucial to achieving the intended outcomes.

It also highlighted that the dairy industry continues to face major challenges, including declining raw milk production, rising production costs, shrinking markets, shortages of working capital, and increasing banking loan burdens. The Association urged the government and Nepal Rastra Bank to provide concessional loans, improve access to working capital, and effectively implement refinancing and loan restructuring facilities for the dairy sector.

The Nepal Dairy Association reaffirmed its commitment to working with the government, Nepal Rastra Bank, and other stakeholders to strengthen the domestic dairy industry, increase farmers' income, create employment opportunities, reduce imports, and contribute to building a self-reliant economy.