- To spur domestic demand, milk distribution programme has been started in Karnataka, Bihar and Rajasthan through anganwadis under the ICDS scheme and in Rajasthan through the mid-day meal scheme.
- Whey milk powder import duty has been increased from 30% to 40%.
- DGFT has been requested to increase export incentive for milk and milk products and Casein from 10% to 20%.
- A corpus of Rs. 300 crore has been created to provide working capital loan to State Cooperative Federation
India occupies the top spot in milk production in the world and contributes 19% to world milk production. Milk production has grown by 23.69% in 2014-18 as compared to UPA’s 2010-14.
The following steps have been taken by the Ministry of Agriculture and Farmers’ Welfare owing to the ongoing milk crisis in Maharshtra.
- Raising Domestic Demand:The Department hasbeen requesting various states since December 2017 to take necessary steps to encourage supply of milk and milk products through Mid-day meal scheme and anganwadi under ICDS scheme for nutritional supports to children. Communicationswith Secretary, M/o Women and Child Development, Secretary, D/o School Education and Chairman Railway Board has also been done.
States like Karnataka, Bihar,Rajasthanetc. have started supply of milk/WMP/milk products to schools under ICDS programme and Rajasthan through Mid-day meal scheme.
- Increase in import Duty:On the proposal of the Department of Agriculture and Farmers’ Welfare, theimport duty of Whey milk powder has been increased from 30% to 40% and notified by DGFT on March 27, 2018.
- Export incentive under MEIS:
- On the recommendation of the Department of Agriculture and Farmers’ Welfare, DGFT decided to provide export incentive for milk powder and Casein etc. at 10% in its notification on July 13, 2018. This includes Nepal and Bhutan.
- Considering the present scenario, the Department has again requested to increase export incentive for milk and milk products and Casein from 10% to 20% for the benefit of farmers.
- Providing working capital fund under “Support to State Cooperative Dairy Federation” scheme:
Under the scheme a corpus of Rs 300 crore in perpetuity with NDDB is to be kept and used for providing soft loans for working capital. Under the scheme soft loan with simple interest at rate of 5 % is given to various cooperatives.
