The Indian Dairy Association (IDA) in a letter to the minister of state for agriculture H N Yadav has said that the government should present a strong case for the Indian dairy industry at the forthcoming inter-ministerial meeting of WTO at Seattle and should work towards renegotiating the existing bound rates of duty on dairy products.

According to IDA president Animesh Banerjee, the inclusion of dairy products in the OGL in adherence to its commitment under WTO has had serious repercussions on the industry. According to DGCIS statistics, SMP imports in 1998-99 registered a more than ten-fold growth over the previous year.

Import of SMP in 1998-99 was 1,424.08 mt against 126.21 mt in 1997-99. In the current year, imports have increased in shocking proportions with the market estimating a massive import of about 15,000 mt till September.As SMP formed the base for the production of milk and milk products, indiscriminate imports would affect milk production growth rate sharply, said Banerjee. He said that India should draw a lesson from its neighbouring countries which had been providing adequate safety to local produce by imposing duties on imported milk powder. The import duty levied on SMP by Bangladesh, Pakistan, Sri Lanka, New Zealand, Brazil and Poland is 200 per cent, 100 per cent, 50 per cent, 12.8 per cent, 31.5 per cent and 102 per cent, respectively.

According to reports, subsequent to the freeing of the SMP import, cheap imported powder of substandard quality is being dumped in the country causing a steep fall in prices. Banerjee said that prices had nose-dived to Rs 50 per kg from Rs 75 per kg and the industry was fearing a further fall in prices to Rs 45 per kg in the ensuing flush season.