Ban import of milk products: Dairy owners

PUNE: Though private dairy owners all over the country will stop purchasing milk from farmers from February 25, this is not likely to affect daily milk supply, as it is largely controlled by co-operative dairies and individual milk suppliers.

Private dairy owners, who export dairy products, have decided to stop procurement of milk from farmers, as they are seeking a ban on imports of cheaper products from countries that offer huge subsidies to farmers. Captain Amitabh Ray (retd), president of the Dairy Industry Export Organisation (DIEO), has communicated the demands in a letter sent to the Central government. However, the agitation will not affect the daily milk supply as it is largely controlled by co-operative dairies and individual milk suppliers.

Speaking to TOI, Vivek Kshirsagar, managing director of the Pune Zilha Sahakari Dudh Utpadak Sangh Maryadit, also known as Katraj Dairy, said, "A small amount of our daily procurement goes to private dairy owners, who are mostly into export of dairy products. If they are going to stop the procurement, co-operative societies like Katraj will certainly have excess milk. In this case, co-operative dairies will find a solution to utilise this excess supply."

In a letter to the Prime Minister, and ministers of commerce and dairy and animal husbandry, the DIEO demanded that duty incentive is provided for exports of milk products under the Vishesh Krishi and Gram Udyog Yojana (VKGUY), with retrospective effect from April 2008. The organisation has also demanded a cash incentive of Rs 15 per kg for export of dairy products under the duty drawback scheme.

"Apart from a ban on the import of dairy products at throwaway prices, we have sought duty incentives under the VKGUY with retrospective effect and additional cash incentives," said Ray. The agitation could create a problem as the manufacturers process about 30 lakh liters of milk every day from nearly three lakh farmers in Tamil Nadu, Andhra Pradesh and Maharashtra.

The VKGUY was launched to promote exports, mainly of agricultural produces, including value-added products. Though milk products were initially granted incentive under this scheme, the government had withdrawn it in April last year before reinstating it in December 2008, Ray said.

Currently, several countries like the US, European nations, New Zealand and Australia offer huge subsidiaries to their exporters, which results into availability of those products at a cheaper rate in India. “It is certainly against the domestic entrepreneurs,” he added.

Pointing out that the procurement of milk is impossible to continue as "Our warehouses are full with dairy products which have become unsaleable," the association has sought fast relief from the government. India exports about 1.5 million tonnes of dairy products annually while the global trade volumes of such items stand at about 37 to 40 million tonnes.

Source: http://timesofindia.indiatimes.com/Pune/