The Hindu Business Line : Sops for milk product exports withdrawn

New Delhi, April 21 As an anti-inflationary measure and also to boost supplies in the domestic market, the Commerce Ministry has withdrawn host of incentives for exports of skimmed milk product (SMP), Casein and other milk products.

The Directorate General of Foreign Trade (DGFT) has now said exports of SMP, casein and any other milk product would not be entitled for benefits under the duty entitlement passbook (DEPB),Vishesh Krishi and Gram Udyog Yojana (VKGUY) and Focus Market schemes

“Some of the companies with existing export orders may fulfil their commitments without the benefits. Removal of such benefits may affect the viability of exports for some. Each company has to take its own decision. But the Government is trying to send a signal that it is addressing the supply side issues,” Mr Ganesh Kumar Gupta, FIEO President told Business Line.

While Focus Market scheme encourages exports to certain identified markets, VKGUY has been designed to encourage export of agro products and promote rural employment.

CRISIL Principal Economist, Mr D.K.Joshi, said the idea behind the measures was to control inflation in whatever way it could be achieved. “Milk is not a major contributor to WPI-based inflation index. But milk inflation (9-10 per cent) is high. Milk and milk products are also mass consumption items in India. The removal of export benefits will have some impact on inflation and also increase domestic supplies”, Mr Joshi said.

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