Government may increase import duty on dry milk

LAHORE: The ministry of finance is actively mulling to increase levy on import of milk powder in a bid to protect domestic dairy farmers, official sources told The News on Monday.
The ministry of National Food Security and Research (NFSR), Punjab government and National Assembly Standing Committee on NFSR have raised this issue separately with the finance ministry. They stressed the need to substantially increase import duty on skimmed milk powder (SMP) and whey powder (WP). The current duty is 20 percent on import from SAARC countries and 25 percent duty for imports from other parts of the world.
A senior official of the finance ministry hinted that his ministry is actively mulling to increase levy on milk powder import.
According to sources, NFSR has formally taken up the issue with the finance ministry to impose heavy duty on import of SMP and WP in the upcoming budget. NFSR Secretary Seerat Asghar is stated to have stressed for restricting dry milk imports as it was hurting the local dairy farmers. The secretary called Pakistan a dumping ground of milk powder from around the world.
Punjab Livestock and Dairy Development Secretary Nasim Sadiq confirmed that the Punjab government has also formally taken up this issue with the federal government. He was of the view that import of dry milk must be restricted as it was greatly affecting dairy farmers. The demand of locally produced milk has been on the decline and thus farm gate price also witnessed a downward trend, he said.
He disclosed that cows are being slaughtered more since dairy farming for the locals is not as lucrative any more. “This needs to stop if we want to develop our local industry,” he said.
Sadiq called for all out support and called for a 100 percent increase in the import duty on milk powder.
Rao Muhammad Ajmal Khan, MNA and member Standing Committee on NFSR also demanded that government should impose 100 percent duty. The members of the committee in general demanded the government to discourage such imports that harm the local dairy sector. He criticised the milk processing industry and said the farm gate price of milk offered to local farmers is dismally low.
University of Veterinary and Animal Sciences Vice Chancellor Dr Talat Naseer Pasha said that India and Turkey have protected their dairy farmers from influx of imported dry milk by imposing high duties. India imposed 68 percent duty while Turkey imposed 180 percent duty on import of milk powder of any kind to protect their local dairy farmers and ultimately to become a net exporter of milk powder, he added.
Contrary to this, Pasha said, large quantities of dry milk are being imported on the pretext of bridging the demand and supply gap. But, he said import figures and trends along with international prices of SMP and WP establish a clear linkage between prices and import.
As prices of SMP and WP products dropped in the international market, the imports in Pakistan jumped. Owing to large volumes of imported milk powder, price of locally produced milk crashed, he observed.
Pasha concluded that steps must be taken immediately to curb unchecked imports of milk powder.