Import of butter oil causing crisis in Indian dairy industry: Naresh Gujral

New Delhi, Feb.19 (ANI): Rajya Sabha Member Naresh Gujral, the son of former Prime Minister I.K. Gujral, on Thursday, appealed to the UPA Government to take steps to save the country's dairy industry from a looming crisis.

He claimed that European countries and New Zealand were dumping butter oil which is the raw material for making Ghee in India, thanks to the generous subsidies that they were receiving from their governments.

He also warned that the United States is also contemplating the reintroduction of a Dairy Export Incentive programme, which would accentuate the problem.

Based on the current price of raw milk being paid to the Indian farmer, butter milk is being sold at around Rs. 175/- per kilogram in the country. However, imported butter milk lands in India at approximately Rs. 130/- per kilogram after freight and duty at 46 percent.

Gujral claimed that this has resulted in depressing demand and the price for raw milk being produced by Indian farmers.

He urged the UPA Government to protect the poor Indian farmer and ensure that the country does not become a dumping ground for heavily subsidized imported butter milk.

The government, he said, must increase the import duty to at least 100 percent with immediate effect.

At the same time, it must withdraw the facility of five percent import duty on butter milk which was offered to cooperatives in April 2008, when the international prices were very high. (ANI)