June 16, 2020

Bangladesh dairy farms call for tariff increase on imported dried milk

Bangladeshi dairy farms have urged the government to raise customs tariffs on bulk imports of powdered milk to protect the expanding industry, said the Bangladesh Dairy Farmers' Association (BDFA), The Daily Star reported.

This plea comes soon after the government announced its revenue collection plan for the next fiscal year, beginning on July 1, last Thursday.

"Importing milk powder in bulk is responsible for hurting the local dairy sector and so, it is really a matter of regret that higher import duties have not been levied on this type product," said Mohammad Shah Emran, secretary general of the Bangladesh Dairy Farmers' Association (BDFA).

The amount of milk powder imported annually has gone up every year since fiscal 2016-17 to meet the country's supply deficit despite the increase in local production.

Bangladesh imported 150 lakh tonnes of milk powder for BDT2,800 crore in fiscal 2018-19, the same year that 99 lakh tonnes of the dried dairy product were produced locally, according to data from the Bangladesh Bureau of Statistics (BBS) and Department of Livestock.

During the first nine months of the current fiscal year, dried milk imports declined 5% on-year to 106 lakh tonnes. Imported milk powder is sold or used by various businesses such as hotels, bakeries and restaurants who can afford to pay increased prices or simply source it locally, the BDFA said while demanding a 100% hike on import duties for the product.

The BDFA also asked the government to make livestock feed exempt from import tariffs to create more competition in the fodder market.

The association demanded that dairy farming be treated as a part of the agriculture sector so that companies can pay reduced electricity and water bills instead of being charged commercial rates.

The BDFA also wants the government to provide a 20-year-long tax benefit for investments in the dairy sector and support from the public sector to establish powdered milk manufacturing plants across the country.