July 16, 2009

Feed millers in Bangladesh are upset about having to pay a 10-percent duty on raw material imports as they are not registered.

 

A feed miller is treated as another trader, meaning they are missing out on duty benefits available to hatchery, poultry operations and animal health companies, millers said.

 

The high costs of importing feed ingredients will push up prices on the domestic market, which will then trickle down to the consumers, according to industry sources.

 

Feed millers have to pay additional six percent tax for importing raw materials of feed due to non-issuance of NOCs (no objection certificate), said Saiful Alam Khan, president of Feed Industries Association of Bangladesh (FIAB).

 

Industry operators said the sector is largely dependent on the imports of raw materials such as soymeal, meat and bone meal and corn to make feed for poultry, fisheries and dairy industry.

 

Khan said the registration is also needed to ensure manufacturing of quality feed and bring the sector under a regulatory framework to check adulteration and toxic substances in the products.