June 21, 2024


Passion For Business

Dairy players oppose free trade pact with EU

Even as the Centre is inching nearer to sign a Free of charge Trade Settlement (FTA) offer with the European Union (EU), India’s dairy sector has flagged some concerns involving livelihood scores of Indian farmers.

The inclusion of dairy products and solutions in the FTA is feared to hamper farmers’ interests and stymie Government’s attempts to raise dairy exports from India, they claimed.

Dairy big and Amul marketer Gujarat Cooperative Milk Promoting Federation Ltd (GCMMF) has written a letter to the Union Commerce Ministry stating that opening up Indian current market for European dairies will consequence into subsidising elite customers at the expense of Indian farmers.

“Our major worry is that EU has export subsidy for their dairies, thus offering double subsidy to farmers and dairies. If they enter the Indian current market less than FTA, it will damage the Indian dairy farmers. We have written to the Union Ministry searching for to hold dairy out of the FTA negotiations,” RS Sodhi told BusinessLine.

In the letter dated March 22, GCMMF has said that there is no case to even further subsidise import of dairy products and solutions this sort of as Skimmed Milk Powder (SMP) as it is currently allowed for import less than Tariff Fee Quota (TRQ) of 10,000 tonnes at fifteen per cent duty from the prevailing sixty per cent.

“SMP is dried type of milk and is direct substitute of milk. For this reason it has direct impression on the milk developed in India,” the letter argued.

Cheese imports

On the chance of cheese imports from Europe, Sodhi mentioned that though its imports are allowed at thirty per cent duty without having any limitations, a majority of this is connoisseur cheese variety. “Against this, equivalent products and solutions are developed by in excess of fifteen crore bad dairy farmers of India for their livelihoods. Thus, any concession in large-close products and solutions like cheese would demonstrate to be concession specified to elite customers at the expense of bad farmers,” Sodhi said in the letter.

Foremost personal dairy participant Parag Milk Food items Limited’s Chairman Devendra Shah said the FTA move will damage dairy producers’ interests as it will consequence into dumping of the less costly dairy products and solutions from Europe.

“When there would be less costly provides of cheese available in the international markets, there would be a temptation for other personal gamers to supply right from there. This will at some point damage India’s possess dairy farming,” Shah said, including that the move necessary a reconsideration.

On the one hand, the Federal government has encouraged dairy products and solutions exports with mozzarella cheese through effectiveness-linked incentive schemes, on the other, it has allowed duty concessions for import of cheese consequently defeating the really objective of the plan.

India refrained from signing RCEP since of a equivalent threat of import of dairy products and solutions from Australia and New Zealand. “EU is five times even bigger producer and regulate equivalent current market share in the worldwide dairy trade. For this reason, India must totally oppose import of any of the dairy products and solutions less than the HS code 0401 to 0406,” he included in the request to the Federal government.