New Delhi: In a quirky twist of global trade, American dogs are chomping on Nepal’s chhurpi, a rock-hard cheese dubbed “Nepali paneer,” which has become a sought-after pet treat in the U.S. market.
While the USA imposes a hefty 50% tariff on Indian imports, Nepal enjoys a mere 10% tariff, fueling a booming trade in chhurpi and other goods. With exports doubling over the past five years, this Himalayan delicacy is not just winning canine hearts but also boosting Nepal’s economy, as revealed in recent trade data.
Chhurpi: The World’s Toughest Cheese
Known as the hardest cheese globally, chhurpi is crafted in Nepal’s mountainous regions from yak milk, rich in protein, calcium, and essential nutrients. Marketed as “Himalayan Dog Chew” in the USA, it’s prized for its durability, keeping dogs engaged for hours while providing health benefits. Chhurpi has seen its exports soar by 10-11% annually over the past five years, with no tariffs or customs duties imposed by the USA, making it a cost-effective choice for American pet owners.
The USA imported 1,435 tonnes of dog chews worth NPR 2.76 billion from Nepal in the 2022-23 fiscal year, part of a broader animal food export market valued at $24.5 million in 2023. This surge, driven by rising pet ownership during the COVID-19 lockdowns, underscores chhurpi’s growing popularity and Nepal’s ability to tap into niche markets.
US-Nepal Trade: A Growing Partnership
While Nepal accounts for less than 1% of US trade, bilateral commerce has grown significantly, reaching $1.7 billion in 2024 — a 23.7% increase from 2023. These figures, highlighted at the seventh US-Nepal Trade and Investment Framework Agreement (TIFA) Council meeting in September 2024, reflect efforts to deepen economic ties and diversify trade. The US exports agricultural products like soybeans, soybean meal, and live animals, alongside essential oils, pharmaceuticals, and aircraft parts to Nepal. In return, Nepal sends hand-knotted carpets, animal food (primarily chhurpi), textiles, artificial fibers, and cardamom to the USA.
The favorable 10% tariff rate, compared to India’s 50%, gives Nepal a competitive edge, particularly for unique products like chhurpi. This tariff advantage, coupled with the Nepal Trade Preference Program (NTPP), set to expire on December 31, 2025, unless renewed, has bolstered exports like carpets and pet treats, positioning Nepal as a niche supplier in the U.S. market.
A Tale Of Tradition And Trade
Chhurpi’s journey from Himalayan pastures to American pet stores is a testament to Nepal’s ability to blend tradition with modern market demands. Crafted using age-old techniques, the cheese is boiled, shaped, dried, and smoked for months, creating a natural, preservative-free treat that stands out in a crowded pet food market. The industry supports thousands of farmers, with companies like Himalayan Pet Supply sourcing from 300 dairies and employing 400 workers in Nepal.
As American dogs savour this Himalayan delicacy, Nepal’s export economy reaps the rewards. With trade growing and tariffs low, chhurpi is not just a treat but a symbol of Nepal’s rising global presence. As the TIFA talks emphasised, continued collaboration could further elevate this partnership, offering Nepal a chance to diversify its exports and strengthen its economic foothold.