The Hindu Business Line : Govt revokes hike in milk powder import quota

BARELY 10 days after effecting a 15-fold increase in the quantum of milk powder eligible to be imported at a concessional 15 per cent basic customs duty, the Commerce Ministry has gone back on its decision, apparently bowing to pressures from the domestic dairy industry.

The Directorate General of Foreign Trade (DGFT) had, on May 12, issued a public notice, amending the existing Tariff Rate Quota (TRQ) procedures governing milk powder imports. The amendment allowed annual import of up to 1.5 lakh tonnes of milk powder (tariff codes 0402.10 and 0402.21, covering skimmed and whole milk powder, and milk food for babies) at 15 per cent duty, with quantities beyond this attracting the regular MFN (most favoured nation) 60 per cent rate.

Prior to this, the `in-quota' quantity eligible for availing the 15 per cent concessional duty was set at only 10,000 tonnes for any particular financial year and imports in excess of this was chargeable to the normal 60 per cent rate.

But now in its latest public notice, dated May 21, the DGFT has withdrawn the decision to enlarge the concessional duty window for imports of up to 1.5 lakh tonnes. "The quota for Tariff Code No. 0402.10 or 0402.21 (is) to read as 10,000 metric tonnes instead of 1,50,000 metric tonnes," the DGFT has stated, without elaborating on the reasons for going back on its earlier move to liberalise the TRQ regime.

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