India has reaffirmed its commitment to maintaining stringent controls on milk and dairy product imports, with no plans to introduce new duty concessions this year, according to Santosh Sarangi, Director General of Foreign Trade (DGFT). This decision aligns with India’s adherence to its tariff rate quotas (TRQs) under World Trade Organization (WTO) commitments.
In a statement on Monday, Sarangi emphasized that India has not allowed any TRQ imports of milk and dairy products since the 2011-12 fiscal year, and there are no plans to do so in the current year. He dismissed reports suggesting that India would permit such imports to address food inflation or offer new duty concessions.
“India has not undertaken any TRQ imports of milk and milk products since 2014-15, and there are currently no pending applications for TRQ for these items,” said Sarangi. “We have strictly adhered to our WTO commitments, ensuring that no new TRQ imports are planned.”
TRQs allow for imports at lower duty rates and are part of India’s market access commitments under the WTO’s Agreement on Agriculture, established during the Uruguay Round. However, since the implementation of these TRQs, India has only imported milk and dairy products under this provision on three occasions, primarily managed by cooperatives and state-owned entities.
The last occurrence of TRQ imports was nearly a decade ago, with the government allowing limited imports only under specific inter-ministerial recommendations, carefully balancing the interests of both producers and consumers.
Controlled Import Channels
In India, import limits are strictly controlled, and any TRQ imports for milk and dairy products are managed exclusively by cooperatives and state-owned entities such as the National Dairy Development Board (NDDB), the National Cooperative Dairy Federation of India (NCDFI), and the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).
These organizations are tasked with ensuring that any imports are in line with national policy objectives and do not adversely affect domestic producers. The careful regulation of these imports underscores India’s focus on protecting its dairy sector, which is a critical part of the national economy and livelihood for millions of farmers.
India’s Position as a Major Importer and Producer
While India is a significant importer of various agricultural products, including vegetable oils such as palm oil, soybean oil, and sunflower oil, it is also one of the largest milk producers globally. The country has established specific import limits for various products, including 10,000 tonnes for milk powder, 150,000 tonnes for oils like sunflower and safflower, and 500,000 tonnes for corn.
Despite the tight control on dairy imports, India remains an active participant in global agricultural trade, balancing import needs with domestic production capabilities.
India’s stance on limiting milk and dairy product imports remains firm, with no new duty concessions in sight. The country’s commitment to adhering to its WTO obligations while safeguarding domestic interests continues to shape its import policies, ensuring stability and growth within the agricultural sector.