The Indian industry has expressed strong opposition to the opening of the Indian dairy sector to foreign trade, citing concerns about potential deep discounting by international dairy companies in the Indian market.
Industry representatives believe that if imports are permitted without tariffs, it will be challenging to differentiate between various types of imported dairy products, which could negatively impact the Indian dairy sector.
The industry has pointed out that in the European Union (EU), government support for dairy farmers is directly linked to net output, resulting in larger farmers receiving more subsidies. In contrast, the scenario in India is quite different, as assistance for dairy farmers primarily focuses on smaller producers.
The industry pointed to the case of edible oil, noting that India was 95% self-sufficient until the 1990s. However, the introduction of imports affected local farmers, and what began as inexpensive imports ultimately resulted in a reliance on foreign sources.
In September, Piyush Goyal, India’s Minister of Commerce and Industry, emphasized that duty concessions for the dairy sector have not been included in any of the Free Trade Agreements (FTAs) currently under negotiation. He noted that achieving fair competition between India’s dairy sector and those in developed countries is challenging due to disparities in farm size and livestock density.
Date: Saturday, 16th Nov 2024 Time: 10:00 AM – 05:00 PM
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