Anil Tiwari

The price of buffaloes has skyrocketed in Nepal’s Terai region and bordering Indian markets, surpassing that of cows. Once valued for their milk, buffaloes are now priced based on their meat, with demand driven by Chinese slaughterhouses operating in Nepal. Over the past decade, half a dozen Chinese-funded slaughterhouses have emerged in cities like Nepalgunj, Birgunj, and Biratnagar, focused on processing buffalo meat and hides. Their primary agenda? To smuggle buffaloes and hides from India and export them to China under the guise of legal documentation.

During Prime Minister KP Sharma Oli’s visit to China, a protocol was signed to export processed buffalo meat to China. Following this, Nepal’s Ministry of Agriculture and Livestock began preparations for implementing the agreement. The government asserts that this deal could open doors to the world’s largest buffalo meat market in China, but critics argue the real beneficiaries are the Chinese slaughterhouses in Nepal, not local farmers or industries.

The Reality Behind the China Agreement

Chinese slaughterhouses in the Terai region have long been accused of relying on smuggled buffaloes from India. While the new agreement emphasizes legal and quality meat exports, it appears to primarily ease exports for Chinese-run operations that already dominate the sector.

China is the largest importer of buffalo meat globally, purchasing 27.8 million metric tons of meat in 2023, valued at approximately $14.4 billion. This trade volume presents both an opportunity and a challenge for Nepal. However, with Nepal’s limited production capacity struggling to meet domestic demand, questions remain about whether this export deal will serve the country’s interests.

Decline in Buffalo Farming and Growing Concerns

According to the 2021 National Agricultural Census, the number of buffalo-rearing households in Nepal has dropped from 1.6 million to 1.4 million over the past decade. Similarly, the total buffalo population decreased from 3.1 million to 2.9 million. Nepal produces 116,503 tons of buffalo meat annually, with 90% consumed domestically, leaving little room for export without affecting local supply.

Critics warn that the deal could significantly increase domestic meat prices, creating hardships for Nepalese consumers. With demand outpacing supply and export commitments, market instability seems inevitable.

The Smuggling Dilemma

Chinese-operated slaughterhouses in Nepal heavily depend on buffalo smuggling from India, facilitated by porous borders and alleged collusion with border security personnel. While officials claim meat exports to Vietnam on behalf of Chinese buyers have stopped, evidence suggests otherwise. With high demand for buffalo meat among China’s affluent classes, Nepal appears to be a stepping stone for exploiting India’s supply chain.

Solutions for Sustainable Trade

To make this agreement beneficial for Nepal, the government must prioritize commercial buffalo farming and invest in local production. Without such measures, this export deal risks benefitting foreign interests while marginalizing local farmers.

If Nepal fails to address its production deficits and focuses solely on exports, it could face significant economic and social repercussions. This deal, which initially seems promising, could become a mere façade for sustaining cross-border smuggling and benefiting foreign stakeholders.

Anil Tiwari