Strategy paper to boost dairy exports on anvil

NEW DELHI: Concerned over a sharp drop in dairy exports due to quality issues, the government has initiated an exercise to boost shipments of dairy products like milk powder and asked the sector to prepare strategy paper in this regard.

The Commerce Ministry had recently convened a meeting of dairy industry representatives including Amul and discussed problems being faced by domestic companies and exporters to major markets including Europe, Japan and Russia.

"Huge scope is there in Europe and Russia for dairy exports. But they are facing phyto-sanitary (quality) issues. Exporters raised the issue of non-tariff barriers in these countries. The industry is expected to submit the paper very soon," the official said.

The Ministry "would take appropriate steps" to encourage export of dairy products after deliberating recommendations of the paper, the official added.

The move assumes significance as India is the world's largest producer of milk and has huge potential for exports.

The country's export of dairy, meat and poultry products has declined by 32 per cent to USD 302 million year-on-year in February this year.

The official further said the government would take up the issues faced by domestic companies at bilateral level besides helping the industry to improve quality and standard in order to comply with global norms.

India has already discussed the sector's issues with Russia, where a huge export potential exists in view of sanctions imposed by western countries.

A team from Russia's phyto-sanitary watchdog, Rosselkhoznadzor, had visited India to inspect several cheese and dairy product units.

As per estimates, Russia's annual dairy product import requirement is about 5,000 million tonnes. The country is facing problem in meeting this demand due to trade sanctions.