New Delhi (PTI): Dairy products manufacturers and exporters have decided to stop milk procurement from February 25, seeking a ban on the imports of cheaper products from countries that offer huge subsidies to farmers.
In a letter to the Prime Minister along with Ministers of Commerce and Dairy and Animal Husbandry, the Dairy Industry Export Organization (DIEO) has also demanded that duty incentive be provided for exports of milk products under the Vishesh Krishi and Gram Udyog Yojana (VKGUY) with retrospective effect from April 2008.
That apart, it has also sought a cash incentive of Rs 15 on the export of a kg of dairy products under the duty draw back scheme.
"Apart from a ban on the imports of dairy products at throw-away prices, we have sought duty incentive under the VKGUY with retrospective effect and additional cash incentives," DIEO President Amitabh Ray told PTI.
The halt in milk procurement assumes significance as the manufacturers process about 30 lakh litres of milk everyday, becoming a source of income for about 2.5-3 lakh farmers.
The VKGUY was launched to promote exports mainly of agricultural produces, including value-added products. Though milk products were initially granted incentive under this scheme, the government had withdrawn it in April last year before reinstating it in December 2008, Ray said.
"Globally, prices of dairy products have come down due to huge subsidies given by the US, Europe, New Zealand and Australia. This makes foreign dairy products cheaper in Indian market than that of domestic farmers, making the prices offered by Indian farmer highly uncompetitive," Chennai-based Hutsun Agro Chairman RG Chandramogan said.
Pointing out that the procurement of milk is impossible to continue as "our warehouses are full with dairy products which have become unsaleable", the association has sought fast relief from the government.
India exports about 1.5 million tonnes of dairy products annually while the global trade volumes of such items stand at about 37-40 million tonnes, Chandramogan said.
Source : The Hindu