Ministry mulling various options to increase duty on import

RECORDER REPORT

ISLAMABAD: Ministry of National Food Security and Research (MNFS&R) is mulling different options to increase duty on import of dry milk and whey powder to benefit dairy farmers and milk processing industry.

The ministry has also sought proposals for the purpose from the farmers and representatives of livestock and milk processing industry in the country.

In its presentation to the ministry, Pakistan Dairy Association (PDA) has proposed imposition of a certain amount of quota based on volume of fresh milk purchase from farmers to import whey powder and dry milk.

The PDA representatives informed the ministry that the quota system will not only benefit the industry but also the farmers; therefore it is the only viable solution to resolve the issue once for all.

The association has recommended fixing an annual quota system for the imposition of regulatory duty (RD) on milk import. It proposed a reduced RD of five percent on milk imported under the quota, and an increased RD of 60 percent on non-quota milk imports.

During the briefing to Minister for National Food Security Sikandar Hayat Bosan, PDA representative Rehan Saeed also offered the government to attach certain strings with the dairy industry while allowing it to import the dry milk at a reduced regulatory duty.

He said the dairy industry could be asked to take measures for development of the farmers and increase their per day milk yield to bring a positive change in their lives.

The ministry was also briefed that as per data available with Federal Board of Revenue, the dairy industry imports 55 percent dry milk and whey powder of the total while the remaining 45 percent is imported by bakeries and confectionaries.

The dairy association representatives urged the ministry to give benefit to those who have been buying milk from the farmers and this formula has also been successfully implemented in Indonesia, Thailand and Turkey.

The ministry may consider the proposal of import quota put forward by the association by asking relevant stakeholders to give an undertaking that they will not sell the imported dry milk/whey powder in the open market.

The PDA has also suggested the ministry to constitute Pakistan Milk Board having representation of all the stakeholders to resolve the issues of the farmers and dairy industry, and to regulate the whole sector.