Co-Ops Call For Discontinuing Skimmed Milk Powder Import Under

The National Co-operative Dairy Federation of India Ltd (NCDFI) has issued a strong plea to the Union government to discontinue the open general licence for the import of skimmed milk powder and butter oil.

In a resolution adopted recently at Anand, the apex body of the 28 state co-operative milk producers and oilseeds growers federations with a membership of one crore farmers, the National Co-operative Dairy Federation of India board noted that such a drastic measure was needed at a time when the World Trade Organisation agreement was being flouted by most of the advanced dairying nations.

Although, under the agreement the advanced nations were required to reduce subsidised exports of milk powder and butter oil by as much as 21 per cent, they were, in fact, able to obtain significantly higher limits for the same, the resolution stated.

 

While milk producers in India receive no such subsidy, the subsidy offered by the European Union works out to $720 and $2,735 per unit tonne of milk powder and butter oil, respectively. In the United States, a dairy farmer gets a subsidy of $850 and $1,700 per unit tonne of milk powder and butter oil, respectively.

Against this backdrop, the National Co-operative Dairy Federation of India board expressed surprise at the Union government adopting such a negative attitude and, instead, demanded that a basic import duty of 40 per cent and 60 per cent ad valorem be imposed on milk powder and butter oil, respectively.

The National Co-operative Dairy Federation of India also mooted the imposition of an additional anti-dumping duty of the same magnitude on milk powder and butter oil, respectively.

The National Co-operative Dairy Federation of India board resolution further observed that at a time when India had graduated to being the largest milk producer in the world, the allowing of indiscriminate import of heavily subsidised dairy commodities would inevitably depress their local market and break the back of milk producers in the country.