Import duty hike on milk products boon for Indian dairy industry
The government has increased the import duty on ghee, butter and butter oil by 10%, giving relief to the domestic industry which has been facing challenges from overseas suppliers. According to a notification issued by the Finance Ministry earlier this week, the import duty on ghee butter and butter oil has been increased from 30% to 40% and the hike will be valid till March-end next year. The decision came after Indian dairy industry and producers of milk products had expressed concern over the threat of cheap imports due to falling prices of these items in the international market. The Central government was “satisfied that it is necessary in the public interest so to do”, the notification said. The move is seen as a deliberate measure to safeguard domestic dairy industry in the wake of deep fall in the global commodity prices. The import duty on ghee, butter and butter oil was increased on the basis of requests from the industry, said Revenue Secretary Hasmukh Adhia. After the announcement of duty hike, the Revenue Secretary had said that the Finance Ministry was ready to take similar steps on other commodities in the wake of depressed prices in the global commodity markets. “We are very cautious of the fact that the domestic industry may need some protection looking at the global situation. We are open to the idea. But the industry has to approach the respective authority,” Adhia was quoted as saying in a report. Experts say that the duty hike will help Indian dairy industry to maintain quality standard vis a vis their global competitors.
October 09, 2015 | 2:22pm IST.