Secretary department of dairying and animal husbandry SK Sinha told reporters here that TRQ deal would also enable India to impose duty of 60 per cent on imports above 10,000 tonnes.

"We have recently notified the world trade organisation (WTO) about the successful completion of the TRQ deal on skim milk powder and whole milk powder," Sinha said.

He said the finance minister was expected to make certain announcements regarding the import of milk powder in his budget speech slated for February 29.

Notwithstanding the agreement with the `Principle supplying interests', the import duty would come into effect only after a few months, Sinha said, adding this was in view of the time required to finalise the items on which the countrywould have to provide market access at a concessional duty to these countries.

Sinha said it was the first TRQ deal under the WTO that India has entered into on any commodity.

India began bilateral negotiations with the US Australia and the EU following sharp increase in import of skim milk powder, which was estimated at 18,000 tonnes between April-October 1999 compared to 2000-3000 tonnes in the same period a year ago.

India began negotiations with the United States, EU and Australia following representations from domestic milk processing units led by the Indian Dairy Association that demanded immediate steps to curb cheap imports that were threatening the existence of domestic units.

Skimmed milk powder is currently freely importable at nil import duty for manufacturing of various value-added milk products.

Sinha said India would have to compensate the losses of the `Principle supplying interests' by providing greater market access on other commodities on reduced import duty.

Asked about thecommodities on which India would offer duty concession in lieu of the TRQ deal on import duty on skim milk powder, Sinha said there were about 16-17 commodities but refused to name them.

However, India is understood to have offered duty concessions to the US, EU and Australia on about 17 commodities including pulses.

TRQ is a trade policy under the WTO that is used to protect domestically-produced goods from cheap imports. Under TRQ, a lower tariff is applied to imports below a certain quantitative limit (quota) agreed by the parties and permits higher tariff on imported goods after the quota is reached.