Bird Flu ravages Nepal’s poultry sector as farmers lose over Rs 1 billion; Govt begins Rs 520 million relief distribution

KATHMANDU: Nepal’s poultry industry has suffered losses exceeding Rs 1 billion after a highly pathogenic bird flu outbreak spread across 11 districts over the past three months, prompting the government to begin distributing Rs 520 million in compensation to affected poultry farmers.

The Ministry of Agriculture and Livestock Development has initiated the first phase of relief distribution, with payments expected to be deposited directly into farmers’ bank accounts within the next few days. The government says the compensation process is significantly faster than in previous outbreaks, although officials acknowledge that the available funds will only cover around 70 percent of the verified claims.

The outbreak, first confirmed in Morang on Chaitra 4, 2082 BS, has emerged as one of Nepal’s most severe avian influenza crises in recent years, affecting commercial poultry farms across eastern, central and Kathmandu Valley districts.

Government allocates additional Rs 500 million

To address mounting losses, the Ministry of Finance approved an additional Rs 500 million in budget reallocation last Thursday, supplementing the Department of Livestock Services’ existing emergency budget of just Rs 20 million.

Senior Agricultural Economist Mahananda Joshi at the Ministry of Agriculture said the government has accelerated the compensation process.

“We have moved forward with the immediate relief distribution process for farmers affected by bird flu. A budget reallocation of Rs 500 million has already been approved,” Joshi said.

Including the department’s existing contingency budget, the government now has Rs 520 million available for compensation.

Under Nepal’s relief policy, affected poultry farmers receive 75 percent of the verified purchase cost of birds, eggs and feed destroyed during disease control operations.

Losses exceed Rs 1 billion

Although the current relief package amounts to Rs 520 million, officials estimate that the overall economic damage has already exceeded Rs 1 billion.

According to the Department of Livestock Services, farmers who have so far submitted complete documentation have reported verified losses worth approximately Rs 690 million, making them eligible for compensation of around Rs 520 million under the government’s 75 percent reimbursement policy.

However, this represents only part of the overall destruction.

Based on the quantity of poultry, eggs and feed destroyed across infected districts, authorities estimate that the total value of materials eliminated to contain the outbreak has surpassed Rs 1 billion, making it one of the costliest bird flu outbreaks experienced by Nepal’s poultry industry.

More than 606,000 birds destroyed

To prevent further spread of the virus, veterinary authorities have culled large numbers of poultry and destroyed contaminated products.

According to Senior Veterinary Officer Mukul Upadhyay, the government has destroyed:

• 606,758 poultry birds
• 994,649 eggs
• 195,595 kilograms of poultry feed

These destruction operations have been carried out across infected farms as part of mandatory disease control measures.

Authorities say eliminating infected poultry remains the only effective method of containing highly pathogenic avian influenza once an outbreak is confirmed.

Outbreak spreads across 11 districts

Since the first detection in Morang, laboratory-confirmed outbreaks have been recorded at 99 locations across the following districts:

Jhapa,Morang, Sunsari, Mahottari, Bara, Chitwan, Nawalparasi, Kathmandu, Lalitpur, Bhaktapur, Kavrepalanchok

While outbreaks in several districts have now been contained, authorities say the virus continues to circulate in parts of the Kathmandu Valley.

According to the Department of Livestock Services:

Controlled districts:

Jhapa, Morang, Sunsari, Bara, Mahottari, Chitwan and Nawalparasi

Districts still reporting outbreaks:

Kathmandu, Lalitpur, Bhaktapur and Kavrepalanchok

Veterinary surveillance remains active in these areas.

Compensation to begin from Morang

The government will begin relief payments from Morang, where the outbreak was first detected.

According to the Department of Livestock Services, 100 farmers from the affected districts have already submitted complete documentation required for compensation.

Applicants must provide:

• Compensation application
• Details of destroyed poultry and products
• Purchase invoices
• Laboratory confirmation reports
• Other supporting verification documents

“We have collected destruction records, compensation applications, purchase bills and laboratory reports. One hundred farmers from the 11 affected districts have already completed the documentation. Farmers from the earliest affected areas will receive priority,” said Senior Veterinary Officer and Under-Secretary Mukul Upadhyay.

Once verification is completed, compensation will be transferred directly into farmers’ bank accounts.

Officials said farmers who cannot be covered under the current budget allocation will receive compensation during the first month of the upcoming fiscal year.

Wild birds making containment difficult

Government officials admit the outbreak has become increasingly difficult to control because the virus has also spread among wild birds.

According to veterinary authorities, bird flu has recently been detected in crows, sparrows and pigeons, allowing the virus to circulate outside commercial poultry farms.

The presence of infected wild birds makes eradication considerably more difficult because they can continuously introduce the virus into poultry production areas.

Officials also acknowledge that delayed reporting by some poultry farmers has worsened the outbreak.

Many farmers reportedly informed veterinary authorities only after significant mortality had already occurred, allowing the virus to spread before containment measures could be implemented.

The combination of delayed reporting, rapid virus transmission and infection among wild birds has significantly complicated disease control efforts.

Biosecurity measures made mandatory

The Department of Livestock Services has instructed poultry farmers, particularly those operating in outbreak zones, to strengthen farm biosecurity.

Authorities have directed farmers to:

• Strictly implement biosecurity measures on poultry farms.
• Avoid reusing old paper egg trays.
• Fully disinfect vehicles before allowing them inside farms.
• Prevent contact between domestic poultry and wild birds.
• Store poultry feed where wild birds cannot access it.
• Transport poultry and poultry products only with valid veterinary certification.
• Immediately bury dead birds in deep pits after laboratory confirmation.
• Thoroughly disinfect infected farms.
• Follow veterinary guidance before restocking poultry.

Officials say compliance with biosecurity protocols remains the most effective defence against further spread.

Multiple poultry diseases detected

Veterinary laboratories are also reporting the presence of several other poultry diseases alongside bird flu.

According to the Department of Livestock Services, recent laboratory testing has identified increasing cases of:

• Low Pathogenic Avian Influenza (LPAI)
• Newcastle disease (Ranikhet)
• E. coli infections

These diseases can also result in high poultry mortality, making diagnosis and laboratory confirmation essential before implementing control measures.

Authorities have urged poultry farmers to maintain regular vaccination schedules and immediately report unusual bird deaths to veterinary offices.

Poultry industry faces prolonged recovery

Nepal’s poultry sector, one of the country’s fastest-growing livestock industries and a major contributor to rural employment and food security, now faces a prolonged recovery following months of disease-related losses.

Although the government’s compensation package will provide immediate financial relief, industry stakeholders say rebuilding poultry flocks, restoring production capacity and regaining market confidence will require substantially more investment than the current relief allocation.

With outbreaks still active in parts of the Kathmandu Valley and infections continuing among wild birds, veterinary authorities warn that strict surveillance, rapid reporting and stronger farm-level biosecurity will be critical to preventing further economic damage to Nepal’s poultry industry.