No dairy exports to Russia, for now

Stringent new conditions make it impossible for Indian dairy co-operatives to export

India might not be able to export dairy products to Russia due to stiff conditions set in by the latter. To import milk and its derivatives, Russia has set a condition that an Indian plant interested in shipping milk products should possess at least 1,000 milch animals. This means traders and processors of milk derivatives would not be able to access the Russian market despite exports of such products were allowed early this year.

Most dairy producers in India operate under farmers' co-operative model in which animals are owned by farmers and co-operative factories only process the procured milk for the benefit of farmers. So, under the existing Russian framework, co-operatives do not fit the bill.

Farmers' co-operatives, however, have approached the government for a favourable revision in the Russian framework.

“No exports to Russia for now, as the Russian authorities have put in stiff conditions. Among others, the interested exporters should have at least 1,000 milking animals,” said R S Sodhi, managing director of Gujarat Co-operative Milk Marketing Federation, which sells Amul brand milk and its derivatives.

Russia allowed its market access for Indian dairy exporters in January this year after the country’s Prime Minister Vladimir Putin visited India and strengthened the relationship between the two countries. Putin announced the firming up of trade links between India and Russia.

Following this, Amul initiated talks with about half-a-dozen Russian importers. Other such exporters have also evinced interest in Russian market access.

India is a global leader in milk production with a good volume of cheese, butter and milk powder exports.

An official from Schreiber Dynamix Dairies, which sells dairy products under ‘Dynamix’ brands, said: “As far as I know, there has been no export of dairy products to Russia.”

Earlier, the company was said to have got approval from the Russian agricultural watchdog Rosselkhoznadzor for dairy exports to that country.