The study aims to investigate the role of livelihood diversification and social capital for the households’ movement, and also to explore the identity and bond of social capital and livelihood diversification to achieve an improved lifestyle. Human relations significantly create a network society, impalpable resource of community, shared values and trust which we draw upon in our daily lives. Livelihood diversification is a community-practised strategy for managing economic and income diversity in poverty reduction. It has highly emphasized income and well-being to diversify livelihood. It also turns the likely norms and networks with the households from exploiting new economic opportunities even in the future. This study responds to why people are migrating from the surrounding and the long distance of Kathmandu, and largely dependent on direct cash incomes from informal activities. It used qualitative approaches such as ethnography, case studies, participant observation, etc. to study the relationship between households and social capital level and livelihood diversification. Hence, the effects of social capital and livelihood diversification were found protecting households’ income. The major findings also show the social supportive network index which has significant effects on the households’ ability to learn a new livelihood. Income generations similarly affect the household capacity to secure a home and the socio-economic condition of households. This study can be advantageous for making both local and urban policy to diversify household livelihoods and social capital as well as applicable for new researchers in social sciences. Most importantly, it helps readers perceive new ways of promoting livelihood diversification and social capital and as a whole social advancement in Central Nepal.

Agriculture as a by-birth gift to most Nepalese people is the main pillar of the national economy. The milk production system is one of the main segments of Nepalese agriculture. Its regime merely has been providing approximately nine per cent contributions to the national economy. The farming activities of farmers that have been described in this study were not an isolated discourse. This study seeks to find push and pull factors in the milk production regime. Several shreds of evidence and genuine information were described by the respondents about the milk production regime. Using the agrarian and social lenses in this ethnographic work, phenomenological data from nine respondents were collected to examine the existing practice of milk production. This study reflects on the poor condition of milk producers, though they have adopted dairy farms as a strategy of living. The dairy farm has still been a household strategy for rural farmers. It has also been a good local business for income generation and improvement of the socio-economic life of local farmers.