April 25, 2008

Indian dairy industry calls for reinstatement of export benefits

The Indian dairy industry has opposed the removal of fiscal benefits on the export of some value-added products saying that the decision was not in line with the purpose of promoting processed farm goods.

The Indian Dairy Association (IDA), headed by its president, Animesh Banerjee, is calling for the reinstatement of the export benefits.

Any financial assistance passed on to the value chain of the products will lower the product value and not increase it in relation to the price, he said.

The benefits were given under the Vishesh Krishi and Gram Udyog Yojana implemented by the government to promote the export of farm products, especially those that had added value.

Under this system, the exports of specified products qualify for some fiscal benefits that may be used to import inputs or capital goods. Milk products were included under the scheme.

Milk is the single largest agriculture commodity in India in terms of output value, said the IDA.

Milk production in India is now estimated at 100 million tonnes each year, growing at 4 to 5 percent annually.