Dairy players oppose free trade pact with EU

Even as the Centre is inching nearer to signal a Absolutely free Trade Arrangement (FTA) offer with the European Union (EU), India’s dairy sector has flagged some considerations involving livelihood scores of Indian farmers.

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

Dairy important and Amul marketer Gujarat Cooperative Milk Internet marketing Federation Ltd (GCMMF) has created a letter to the Union Commerce Ministry stating that opening up Indian industry for European dairies will consequence into subsidising elite individuals at the price tag of Indian farmers.

“Our greatest issue is that EU has export subsidy for their dairies, therefore delivering double subsidy to farmers and dairies. If they enter the Indian industry beneath FTA, it will damage the Indian dairy farmers. We have created to the Union Ministry looking for to continue to keep dairy out of the FTA negotiations,” RS Sodhi told BusinessLine.

In the letter dated March 22, GCMMF has reported that there is no case to more subsidise import of dairy products and solutions this kind of as Skimmed Milk Powder (SMP) as it is by now allowed for import beneath Tariff Fee Quota (TRQ) of 10,000 tonnes at 15 per cent duty from the prevailing 60 per cent.

“SMP is dried type of milk and is immediate substitute of milk. Consequently it has immediate effect on the milk produced in India,” the letter argued.

Cheese imports

On the chance of cheese imports from Europe, Sodhi said that whilst its imports are allowed at thirty per cent duty with out any limitations, a the vast majority of this is gourmand cheese wide variety. “Against this, very similar products and solutions are produced by above 15 crore lousy dairy farmers of India for their livelihoods. Consequently, any concession in significant-stop products and solutions like cheese would show to be concession supplied to elite individuals at the price tag of lousy farmers,” Sodhi reported in the letter.

Major personal dairy participant Parag Milk Foods Limited’s Chairman Devendra Shah reported the FTA go will damage dairy producers’ passions as it will consequence into dumping of the less costly dairy products and solutions from Europe.

“When there would be less costly supplies of cheese offered in the worldwide markets, there would be a temptation for other personal players to source specifically from there. This will ultimately damage India’s personal dairy farming,” Shah reported, adding that the go required a reconsideration.

On the a single hand, the Govt has encouraged dairy products and solutions exports with mozzarella cheese by means of overall performance-connected incentive strategies, on the other, it has allowed duty concessions for import of cheese hence defeating the incredibly reason of the plan.

India refrained from signing RCEP for the reason that of a very similar menace of import of dairy products and solutions from Australia and New Zealand. “EU is 5 moments greater producer and control very similar industry share in the global dairy trade. Consequently, India should wholly oppose import of any of the dairy products and solutions beneath the HS code 0401 to 0406,” he additional in the request to the Govt.