Dhangadhi’s Dairy Distribution Project Brings in Rs 6 Crore as Local Demand for Paneer and Ice Cream Surges

The Dhangadhi Milk Distribution Project is turning local milk into a strong revenue engine. Under the Dairy Development Corporation, the project has collected Rs 6 crore in revenue during the first ten months of the current fiscal year, driven by sales of processed products such as paneer and ice cream across Sudurpashchim Province.

How the project is performing

Located in Kanari, Dhangadhi Sub-Metropolitan City-15, the project gathers milk from cooperatives and firms in Dadeldhura, Kailali, and Kanchanpur, then processes it for the local market. Project chief Nirajan Bhattarai said the revenue has come from selling value-added dairy products rather than raw milk alone.

The Dhangadhi Milk Supply Scheme page shows that the facility operates a collection network in the region, with a daily milk collection range of 2,000 to 3,000 liters in the lean season and 6,500 to 7,000 liters in the flush season. It also lists a production capacity of 1,000 liters per hour and notes 42 beneficiary cooperatives and 2,123 beneficiary households.

Why this matters

The project highlights how local dairy infrastructure can create value beyond collection alone. By processing milk into paneer, ice cream, and other products, the Dhangadhi unit is capturing more of the earnings inside the province and building a stronger market for farmers and cooperatives.

That model matters in a region where dairy production has long depended on efficient collection, chilling, and distribution. The project’s revenue suggests that local branding and processing can help public dairy facilities compete more effectively in provincial markets.

What the numbers suggest

Six crore rupees in ten months points to steady demand for packaged dairy products in Sudurpashchim. It also suggests that processed items, especially higher-margin products like paneer and ice cream, are doing more than supporting sales - they are driving the project’s financial performance.

As the Dhangadhi scheme continues to expand its reach across cooperative networks, it is becoming a useful example of how Nepal’s dairy sector can add value at the local level while supporting rural producers.