From Bicycle to Processing Plant: The Inspiring Journey of Rittika Dairy Industry in Eastern Nepal

Jhapa. 'Rittika Dairy Industry Pvt. Ltd.' located in Dhaijan, Mechinagar-12, Jhapa, has established itself as a successful and exemplary enterprise in the Eastern Nepal dairy sector. Behind this success lies years of struggle, continuous hard work, and visionary thinking. The industry's operator, Yogendra Chimoriya, has transformed a small endeavor, which began amidst family difficulties, into a large-scale industry today.

Around 2050 BS, his father, Ghanshyam Chimoriya, used to cycle the milk collected from the villages to the Siliguri market in India. At that time, the market for milk in Nepal was limited, creating a compulsion to sell the produced milk in the Indian market.

After a few years, Yogendra's elder brother also joined this business. Gradually, by involving other local people, the scope of milk collection expanded. Chimoriya states that at that time, about 1,500 liters of milk were delivered to Siliguri daily by bicycle, which was a challenging task in itself.

“As time went on, the demand for milk increased, and collection also expanded. We then purchased a pickup van to transport the milk. After obtaining permission from the Indian Embassy, systematic transportation began from 2060 BS. After that, we succeeded in accelerating the business,” he said.

Chimoriya mentioned that he understood the potential of the dairy industry closely after starting to sell milk to Himul Dairy in Siliguri around 2061 BS. This experience inspired him with the idea of establishing a dairy industry in Nepal itself.

Following that vision, in 2063 BS, the Chimoriya family formally started the dairy business by registering it with the Cottage and Small Industries. Businessman Chimoriya believes that the high demand seen during the Teej festival in 2063 BS confirmed that there was a market for dairy products within Nepal. He stated that the overwhelming demand for milk and yogurt during that festival made the decision to fully commit to the dairy business easier.

Chimoriya further expanded his business around 2065 BS by purchasing Panchamrit Dairy, which was operating in Birtamod, for Rs 1.2 million. Subsequently, by gradually expanding the industry's structure, technology, and market, 'Rittika Dairy Industry' took its current form.

Currently, Rittika Dairy Industry collects over 31,000 liters of milk daily from 32 collection centers in Jhapa and Ilam. Chimoriya states that milk comes to the industry through more than six hundred farmers and cooperatives, directly supporting the rural economy.

The industry provides direct employment to 120 people, 84 of whom are affiliated with the Social Security Fund. Additionally, hundreds have received indirect employment in transportation, sales distribution, and other auxiliary sectors. According to operator Chimoriya, the industry recorded a turnover of approximately Rs 810 million in the last fiscal year and paid about Rs 8 million in taxes to the government under various tax heads.

From the collected milk at this industry, approximately 13,000 liters of packaged milk, 5,000 liters of yogurt, 2,000 liters of paneer (cheese), sweets and ice cream equivalent to 1,000 liters, and 5,000 liters worth of churpi (dried cheese) are produced daily. The remaining milk is supplied to the Badam Drink industry, and surplus milk is processed into milk powder.

According to Chimoriya, the main markets for the industry are Jhapa, Morang, and Sunsari districts in Koshi Province. Some products also reach the hilly districts. The ghee and churpi produced here reach America and Europe via Kathmandu, although Chimoriya informed that the industry sends them abroad through traders rather than direct export.

He also operates a cattle farm alongside the dairy industry. This farm is established not only for milk production but also with the objective of attracting farmers towards improved cattle rearing. Chimoriya stated that the cattle farm is being operated with the goal of teaching small-scale farmers modern cattle rearing techniques, solving their problems, and increasing production. “We are adopting a strategy to increase production through small farms, inspired by the Gujarat model of India. Accordingly, we are working on this model with the goal that small farmers start with a capacity of five liters of milk production and gradually reach 10 liters and 20 liters of production. It is expected that this will increase farmers' income and strengthen the rural economy,” he said.

Chimoriya has had to face various challenges during the operation of the dairy industry. Initially, the main problems were a shortage of skilled manpower and 'load shedding' (power cuts). Although those problems have been somewhat resolved now, other challenges have emerged. “High production costs, policy complexities for export, and the need to compete with foreign products are the main problems. Especially, while the customs duty on imported dairy products in Nepal is low, we face cumbersome procedures when exporting Nepali products,” Chimoriya complained.

According to him, Nepali churpi has high demand in the international market, especially in Europe and America. However, the full benefit cannot be realized due to policy obstacles in the export process. Therefore, Chimoriya demands that the government introduce policies to facilitate churpi export and support making it competitive in the international market. He also drew attention to the potential of advancing the dairy business by linking it with meat production. Chimoriya stated that the agreement between Nepal and China regarding the export of buffalo and bull meat could create new opportunities in this sector.

“Since milk production occurs alongside meat production, if these two businesses are advanced together, further job creation and income growth can occur. The government should work on this issue,” he said.

Yogendra Chimoriya's story is not just the story of a successful industrialist; it is also an inspiring example of how possibilities can be identified and utilized in rural Nepal. The journey that started from carrying milk on a bicycle to the market has transformed into an industry processing thousands of liters of milk, which is a remarkable achievement in itself. His efforts have empowered farmers, laborers, and the local economy. Chimoriya's struggle shows that if such enterprises receive appropriate policy, concessions, and encouragement from the state, the dairy sector in Nepal can make an even greater economic contribution.