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Amul declines award for best dairy exporter

Harish Damodaran

PROTESTING BAN

New Delhi March 29 In a protest against the Centre's decision to ban milk powder exports, the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) has declined the Agricultural and Processing Food Products Export Development Authority's (APEDA) award for best dairy exporter during 2005-06.

"On the one side, the Government wants to reward us for our excellent export performance. On the other, the same Government stops us now from exporting. They have taken the decision to ban exports without properly understanding the market dynamics and the ultimate impact it will have on millions of milk producers," the Managing Director of GCMMF, Mr B.M. Vyas, told Business Line.

He said GCMMF, which markets milk products under the Amul brand name, will not accept the APEDA's Annual Export Award 2005-06 scheduled to be presented by the Commerce Minister, Mr Kamal Nath, at a function here on April 4. The Rs 3,800-crore cooperative's export turnover touched Rs 134.5 crore in 2005-06, up from Rs 115 crore in 2004-05 and Rs 45 crore the year before.

The Centre, on February 9, notified the ban on export of skimmed, whole and infant milk powders in both bulk as well as consumer packs. Further, the ban (till September 30) was made applicable even on consignments against past Letters of Credit (LC).

"Our brand image has been tarnished because the notification does not even allow committed exports against transitional arrangements under para 1.5 of the Foreign Trade Policy. As a result, we have not been able to supply products against already-opened LCs, for which even advance payments were made," Mr Vyas said.

Moreover, the ban extends to even branded consumer packs (less than five kg) and supplies to Nepal and Afghanistan (under the World Food Programme). Of the Rs 135 crore exports by GCMMF in 2005-06, about Rs 80 crore comprised bulk milk powders, with consumer packs (including ghee, UHT milk, butter, cheese and paneer) making up the rest. Exports of skimmed and whole milk powder soared to 50,501 tonnes in 2005-06, from a mere 4,185 tonnes in 2003-04 and 28,250 tonnes in 2004-05.

More Stories on : Dairy & Dairy Products | Exports & Imports | Awards & Honours | Co-operatives

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