Nepal to consider request for import of certain dairy products from India after trade barrier concerns raised

India has raised concerns about barriers to Indian milk exports to Nepal, and the neighbouring country has agreed to consider the import of specific dairy products, including whey and cheese, the commerce ministry said in a statement on Sunday.

The matter came up during the India-Nepal Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Combat Unauthorised Trade held in Kathmandu on January 10-11.

“The Indian side highlighted the problems faced in milk exports to Nepal. The Nepali side agreed to consider the request of the Indian side positively for milk products not adequately produced in Nepal such as whey and cheese,” the commerce ministry said.

India, on the other hand, agreed to Nepal's request for the supply of 200,000 MT of wheat, a gesture appreciated by the Nepali side for ensuring the steady availability of essential commodities.

India also allowed Nepali cargo in transit via the Kakarbhitta-Banglabandha route to adhere to the same axle weight regulations applicable to Indian vehicles. As per Indian road transport regulations, the axle weight limit will be 18.5 tonnes for two-axle vehicles and 28 tonnes for three-axle vehicles.

Nepal's requests to include sal seeds and chayote in India's Plant Quarantine Order were approved.

"The request for Jatamasi - Root extract; Sugandhkokila berry extracts; Sugandhwal Rhizome extract and Timur berry extracts into the list of Processed Items (Plant Products) has also been accepted,” it added.

The Indian delegation was led by Sunil Barthwal, Secretary, Department of Commerce, and included senior officials from various ministries and the Indian Embassy in Kathmandu. Nepal's team was headed by Gobinda Bahadur Karkee, Secretary, Ministry of Industry, Commerce, and Supplies, supported by representatives from different ministries and departments.

India remains Nepal’s largest trade and investment partner, and bilateral discussions such as the IGC are expected to further strengthen economic ties.