Some relief for farmers as Govt announces duty incentives on milk product exports

Pashu Sandesh, 24th September 2018

In an apparent relief to the dairy farmers Government has announced duty incentives on the export of Milk and certain milk products under the Merchandise Export from India Scheme (MEIS).

In the July 10% incentive announced on certain Agriculture and Milk products under MEIS , which has now been increased to 20% till January next year. The Dairy items which are included in the MEIS are cheese, whole milk, skimmed milk, milk food for babies, condensed milk, yoghurt, butter milk and whey.

Provision of incentives becomes significant in the wake of the recent agitation by the Maharashtra Dairy farmers against the backdrop of bumper milk production and falling milk procurement prices.

The move by the Government will put an extra burden of Rs 21.4 crore rupees on the exchequer. Commerce ministry has sought more than 57 crore for round the year incentives but the revenue department has curtailed the funds to more than half citing budgeting constraints.