The Government of India has been asked to support dairy products exporters in the form of subsidy so that dairy exporters may compete with their counterparts in the US, EU and other countries.
Governments in these countries are already extending support to the dairy industry exporters by way of high subsidies. Indian Dairy Association (IDA) president Dr N R Bhasin told FoodBizDaily in an interview: “The major exporting countries in the world for dairy products are New Zealand, Australia, the EU and the US. The cost of production in Oceania is lower because of their cost competitive farming system. The EU started the subsidy scheme in January 2009.
The US also started a Dairy Export Incentive Program (DEIP). Bhasin said this program helped exporters of the US dairy products to meet the prevailing world prices for targeted dairy products and destination. Under the program, the US Department of Agriculture would pay cash to exporters as bonuses allowing them to sell dairy products at prices lower than the exporters’ cost of acquiring them. The major objective of the program is to develop export markets for dairy products where US products are not competitive.
Asking for government’s support, Dr Bhasin pointed out: It is feared that future dairy prices would fall partly on account of new subsidies by the US, thus making Indian export more difficult unless the Government of India agrees to provide some form o0f support to the industry.”
Bhasin said that now India has emerged as an exporter of dairy products. In 2008-09, the exports were around $200 million. However, the global economic depression has affected the milk sector in India. Dairying had become an important secondary source of income for millions of families and had assumed the most important role in providing employment and income generating opportunities, Dr Bhasin said.
Source : fnbnews.com