May 9, 2008

India dairy industry asks for 20 percent tariff on oilmeal exports

Dairy producers in India have sought the imposition of a 20 percent tax on oilmeal exports.

According to BM Vyas, managing director of the Gujarat Cooperative Milk Marketing Federation, if the government wants to keep milk prices in check, exports of ingredients and extractions used in producing cattle feed should be discouraged.

Vyas said a 20 percent duty on exports will make cattle feed more affordable.

For the week ended April 19, the wholesale price index (WPI) for oilcakes registered a year-on-year growth of 32.6 percent, with these amounting to 45.4 percent for rape and mustard cake, 30.3 percent for groundnut cake and 41.7 percent for de-oiled cake.

These increases resulted in an annual rise of 14.5 percent in the WPI for cattle feed.

The price of cattle feed at present is INR7,000 a tonne from only INR5,500 a tonne last year, Vyas said.

The WPI for milk rose by 9.3 percent, which is below the increase recorded for cattle feed and oilmeals.

US$1=INR41.72, as of May 9