Indian dairy industry fears global giants will 'milk' the market with deep discounts.
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The Indian industry has opposed opening of the dairy sector for foreign trade over fears of deep discounting by global dairy players in the Indian market. The dairy industry is of the view that if allowed without duty, it will be difficult to distinguish between types of imported dairy products which may harm the Indian dairy sector.
The industry has cited the instance of government support provided to dairy farmers in the European Union (EU) as directly proportional to the net output, which means that bigger farmers get more subsidies from the government. However, the situation is the converse in India as support to dairy farmers out here is mostly directed at smaller farmers.
Industry cited the example the edible oil, where India used to be 95% self-sufficient till the 1990s, but opening of imports impacted local farmers and the initially cheap imports eventually led to import dependence.
In September, India's Commerce and Industry Piyush Goyal had reiterated that duty concessions in dairy sector haven't been a part of any FTAs (Free Trade Agreements) being negotiated. He had said that it isn't possible to ensure competition on an equal footing for dairy sectors in India and the developed countries due to a difference in farm size and livestock per unit.
The industry has cited the instance of government support provided to dairy farmers in the European Union (EU) as directly proportional to the net output, which means that bigger farmers get more subsidies from the government. However, the situation is the converse in India as support to dairy farmers out here is mostly directed at smaller farmers.
Industry cited the example the edible oil, where India used to be 95% self-sufficient till the 1990s, but opening of imports impacted local farmers and the initially cheap imports eventually led to import dependence.
In September, India's Commerce and Industry Piyush Goyal had reiterated that duty concessions in dairy sector haven't been a part of any FTAs (Free Trade Agreements) being negotiated. He had said that it isn't possible to ensure competition on an equal footing for dairy sectors in India and the developed countries due to a difference in farm size and livestock per unit.