November 1, 2004

India Does Not Rule Out Increasing Import Duty on Milk Products

India would not hesitate to raise import duties on milk products to protect the country's dairy sector. Agriculture Minister Sharad Pawar revealed this on Sunday.

"The new world trade regime has opened doors to markets abroad. Our doors are opened for them as well. There are opportunities as well as threats. There can be serious repercussions in the milk sector if we are not careful," Pawar said.

"The US and several European nations have created obstacles against import of milk and milk products. Japan has imposed duties up to 600 percent, while our duties are still kept at low levels.

"However, if imported milk and milk products threaten to flood the Indian markets, I will not hesitate in revising the duty structure at the earliest," he said.

"The Indian farmers must emerge as a global player and we will do everything possible to empower them," he added.

Pawar noted that more people, including small and marginal farmers, in the rural regions were dependent on the milk sector than on any other sector.

The minister said while many regions of the country witnessed mass suicides by farmers, areas where milk co-operatives were vibrant remained untouched through worst drought and low productivity.

Noting that India was the world's top milk producer, he suggested that productivity be increased as it remained low at 990 kg per lactation, compared with the world average of 2,030.

He also suggested that the milk sector should learn from the example of Amul and focus more on branding and marketing.