Even as the Centre is inching closer to signal a Free of charge Trade Settlement (FTA) offer with the European Union (EU), India’s dairy sector has flagged some issues involving livelihood scores of Indian farmers.
The inclusion of dairy products and solutions in the FTA is feared to hamper farmers’ pursuits and stymie Government’s endeavours to increase dairy exports from India, they claimed.
Dairy major and Amul marketer Gujarat Cooperative Milk Advertising Federation Ltd (GCMMF) has composed a letter to the Union Commerce Ministry stating that opening up Indian industry for European dairies will outcome into subsidising elite consumers at the price of Indian farmers.
“Our major concern is that EU has export subsidy for their dairies, thereby offering double subsidy to farmers and dairies. If they enter the Indian industry under FTA, it will harm the Indian dairy farmers. We have composed to the Union Ministry seeking to retain dairy out of the FTA negotiations,” RS Sodhi explained to BusinessLine.
In the letter dated March 22, GCMMF has reported that there is no scenario to even more subsidise import of dairy products and solutions these kinds of as Skimmed Milk Powder (SMP) as it is already allowed for import under Tariff Charge Quota (TRQ) of 10,000 tonnes at fifteen per cent duty against the prevailing sixty per cent.
“SMP is dried kind of milk and is immediate substitute of milk. Hence it has immediate affect on the milk developed in India,” the letter argued.
Cheese imports
On the possibility of cheese imports from Europe, Sodhi stated that though its imports are allowed at thirty per cent duty without the need of any limitations, a majority of this is gourmand cheese variety. “Against this, comparable products and solutions are developed by more than fifteen crore poor dairy farmers of India for their livelihoods. So, any concession in large-close products and solutions like cheese would show to be concession presented to elite consumers at the price of poor farmers,” Sodhi reported in the letter.
Foremost non-public dairy player Parag Milk Food items Limited’s Chairman Devendra Shah reported the FTA transfer will harm dairy producers’ pursuits as it will outcome into dumping of the more cost-effective dairy products and solutions from Europe.
“When there would be more cost-effective provides of cheese available in the international markets, there would be a temptation for other non-public players to source instantly from there. This will at some point harm India’s own dairy farming,” Shah reported, adding that the transfer needed a reconsideration.
On the a single hand, the Authorities has encouraged dairy products and solutions exports with mozzarella cheese by general performance-linked incentive schemes, on the other, it has allowed duty concessions for import of cheese hence defeating the really intent of the plan.
India refrained from signing RCEP because of a comparable risk of import of dairy products and solutions from Australia and New Zealand. “EU is 5 moments larger producer and manage comparable industry share in the worldwide dairy trade. Hence, India must completely oppose import of any of the dairy products and solutions under the HS code 0401 to 0406,” he added in the ask for to the Authorities.
