Dairy players oppose free trade pact with EU
Even as the Centre is inching closer to signal a Free of charge Trade Arrangement (FTA) deal with the European Union (EU), India’s dairy sector has flagged some problems involving livelihood scores of Indian farmers.
The inclusion of dairy goods in the FTA is feared to hamper farmers’ pursuits and stymie Government’s efforts to strengthen dairy exports from India, they claimed.
Dairy key and Amul marketer Gujarat Cooperative Milk Marketing and advertising Federation Ltd (GCMMF) has written a letter to the Union Commerce Ministry stating that opening up Indian current market for European dairies will final result into subsidising elite consumers at the expense of Indian farmers.
“Our major worry is that EU has export subsidy for their dairies, therefore furnishing double subsidy to farmers and dairies. If they enter the Indian current market under FTA, it will harm the Indian dairy farmers. We have written to the Union Ministry in search of to preserve dairy out of the FTA negotiations,” RS Sodhi told BusinessLine.
In the letter dated March 22, GCMMF has explained that there is no scenario to additional subsidise import of dairy goods this sort of as Skimmed Milk Powder (SMP) as it is presently allowed for import under Tariff Fee Quota (TRQ) of ten,000 tonnes at fifteen for each cent obligation towards the prevailing 60 for each cent.
“SMP is dried kind of milk and is direct substitute of milk. As a result it has direct effects on the milk developed in India,” the letter argued.
Cheese imports
On the risk of cheese imports from Europe, Sodhi stated that while its imports are allowed at 30 for each cent obligation devoid of any limitations, a the vast majority of this is gourmet cheese range. “Against this, very similar goods are developed by above fifteen crore bad dairy farmers of India for their livelihoods. So, any concession in substantial-end goods like cheese would verify to be concession supplied to elite consumers at the expense of bad farmers,” Sodhi explained in the letter.
Leading personal dairy participant Parag Milk Food items Limited’s Chairman Devendra Shah explained the FTA go will harm dairy producers’ pursuits as it will final result into dumping of the less costly dairy goods from Europe.
“When there would be less costly provides of cheese readily available in the international marketplaces, there would be a temptation for other personal players to source straight from there. This will inevitably harm India’s have dairy farming,” Shah explained, introducing that the go necessary a reconsideration.
On the one particular hand, the Federal government has encouraged dairy goods exports with mozzarella cheese by means of general performance-linked incentive strategies, on the other, it has allowed obligation concessions for import of cheese therefore defeating the extremely intent of the plan.
India refrained from signing RCEP for the reason that of a very similar danger of import of dairy goods from Australia and New Zealand. “EU is 5 periods more substantial producer and handle very similar current market share in the world dairy trade. As a result, India ought to entirely oppose import of any of the dairy goods under the HS code 0401 to 0406,” he extra in the request to the Federal government.
