New Delhi: The government has withdrawn incentives given under various schemes for exports of skimmed milk and other dairy products, a move aimed to boost supplies in the domestic market and contain the high inflation rate.
Benefits provided under Vishesh Krishi and Gram Udyog Yojana (VKGUY), Focus Market Scheme and Duty Entitlement Pass Book (DEPB) rates have been withdrawn for export of SMP, casein (milk protein) and other milk products as well.
“Export of skimmed milk product, casein and any other milk product shall not be entitled for the benefit of VKGUY and Focus Market scheme with immediate effect,” a notice by the Directorate General of Foreign Trade notice said. It also specified that these products would not be entitled for DEPB.
Commenting on the move, Amul General Manager,(Marketing), R S Sodhi told PTI, “It seems the measure has been taken to discourage milk exports and thus improve the availability in the domestic market.”
He said incentives have been withdrawn even on exports of consumer packs of milk and value-added products like cheese.
Meanwhile, the wholesale price index of milk has risen 1% for the week ended 5 April.
Crisil principal economist, D K Joshi, said, “Although WPI of milk rose 1% last week, this is not the prime driver for inflation, which is hovering over 7%.”
Sodhi said such moves would not help exporters like Amul as India may lose credibility and assured market globally.
He said there is no shortage of milk and related-products and prices too have remained stable in the last few months.
SMP accounts for roughly 6% of milk production of 100 million tonnes, of which about 1% is exported.
VKGUY is aimed to encourage export of agro products and promote rural employment, while Focus Market Scheme encourages exports to identified market.