The Hindu Business Line : Export sops to milk, dairy products withdrawn

NEW DELHI: The government has withdrawn incentives given under various schemes for exports of skimmed milk and other dairy products, a move aimed to boost supplies in the domestic market and contain the high inflation rate.

Benefits provided under Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Market Scheme and Duty Entitlement Pass Book (DEPB) rates have been withdrawn for export of SMP, casein (milk protein) and other milk products as well.

"Export of skimmed milk product, casein and any other milk product will not be entitled for the benefit of VKGUY and Focus Market scheme with immediate effect,'' a notice by the Directorate General of Foreign Trade notice said. It also specified that the se products would not be entitled for DEPB.

Commenting on the move, Amul General Manager,(Marketing), R S Sodhi told PTI, "It seems the measure has been taken to discourage milk exports and thus improve the availability in the domestic market.'' He said incentives have been withdrawn even on expo rts of consumer packs of milk and value-added products like cheese.

Meanwhile, the wholesale price index of milk has risen one per cent for the week ended April 5.

CRISIL Principal Economist D K Joshi said, **Although WPI of milk rose one per cent last week, this is not the prime driver for inflation, which is hovering over 7 per cent.'' Sodhi said such moves would not help exporters like Amul as India may lose cr edibility and assured market globally. He said there is no shortage of milk and related-products and prices too have remained stable in the last few months.

SMP accounts for roughly 6 per cent of milk production of 100 million tonne, of which about one per cent is exported. - PTI

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