Government to consider incentivizing exports of milk products

July 19, 2018

Milk is an important part of our food hierarchy, but are our dairy farmers happy? In lieu the government is considering incentivizing exports of milk products by adding milk to mid-day meal rations as well as reducing GST and increasing import duty on certain products as it seeks ways to ensure better returns for dairy farmers. 

The Government conducted a high-level inter-ministerial meeting under transport minister Nitin Gadkari to discuss these measures, even as a strike by dairy farmers in Maharashtra continued for the second day. Railway minister Piyush Goyal, who also holds the finance and coal portfolios, Amul managing director R.S. Sodhi, Maharashtra State Commission of Agricultural Costs and Prices Centre chairman Pasha Patel attended the meeting, with agriculture minister Radha Mohan Singh joining in through videoconferencing.
They discussed challenges faced in the milk production sector and decided to offer a 10 per cent incentive on exports of milk and milk products. There will be a second meeting to explore available options.
States would soon be asked to come on board. Also, there are a lot of countries that receive grants from India. Some of these have shortage of milk. Also, there are a lot of countries that receive grants from India. Some of these have shortage of milk. Govt. could offer them milk powder as a part of grant. The basic thing is to find out ways to push the retail demand of milk. 

Centre is planning to create a campaign in which it would urge people to replace cold drinks with milk and also considered cutting GST on ghee and butter to 5 per cent from 12 per cent and increasing import duty on lactose to 60 per cent from 40 per cent.
Dairy cooperatives have a stock of more 1.5 lakh tonnes of skimmed milk powder — used for preparing liquid milk in the summer when supplies are short — and they could easily export 50,000 tonnes if an export subsidy was given, helping firming domestic prices.
In Maharashtra, The government maintains that the Swabhimani Shetkari Sangthana’s (SSS) milk-supply-stoppage call didn’t affect supplies to consumers, but in some pockets of Pune, there were reports of milk shortages. But the organisation is fixed on carrying on the agitation till the government accepts its demand of giving a subsidy of Rs. 5 a litre to farmers. 

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