The Indian government has lifted an over three month-long ban on manufacturing and trading of poultry products in Mechi Municipality of eastern Nepal, bordering India, where the first case of bird flu was detected, officials said.

The decision was made on Friday (June 5) after two surveillance teams, comprising experts and technicians, found no sign of bird flu within the 10-kilometres radius of the Mechi customs office - the central point of bird flu.

The Ministry of Agriculture spokesperson Hari Dahal however, said that the ban on import of poultry products from India has not been lifted, adding that the ban will remain effective as precautionary measures.

The authorities had culled around 2,500 birds and destroyed thousands of eggs in the municipality after the first bird flu was detected in mid-January.