RCEP talks: Commerce Ministry to take views from dairy-consuming industry

The Union Commerce Ministry is set to meet members of the dairy consuming-industry to know their views if dairy should be included as a part of negotiations under Regional Comprehensive Economic Partnership (RCEP). This meeting is to be held Today in New Delhi. The main focus will be on whether to allow dairy as part of negotiations under RCEP. This is part of the stakeholders' consultation process on dairy sector.

The Department of Commerce is planning to meet multinational dairy product players along with some home-grown companies as well as dairy federations regarding how RCEP can provide an export opportunity for dairy products in high-value-added segments, using imports from the RCEP partners.

The invitations have been sent to about 60 top dairy consuming-players including Ferrero, Hersheys, Nestle, Kwality, Unilever, Lotte, Pepsico, besides domestic private players such as Reliance, Havmor, Dinshaw's and some dairy federations.

According to an industry source, "The agenda of the meet clearly shows it aims to lay the ground for allowing dairy imports under RCEP talks. While it aims to discuss issues of price and product differentiation, it appears that it will primarily focus on the consumption side of the dairy industry, than the production side. The agenda is silent on safeguarding interests of milk producers and dairy farmers."

On July 22, the Union Commerce Minister Mr. Piyush Goyal have met dairy sector players in context of RCEP negotiations in Mumbai. According to dairy players claim the Minister have said that the government will not venture into anything that will harm interests of the dairy farmers.

It is feared that this meeting may be concerned to further build a case for allowing cheap and duty-free imports of dairy products from surplus producers such as New Zealand and Australia.

"There is a fear among the industry that discussions with consuming-industry will only lead to exploring ways for cheaper inputs through imports. Consuming companies may benefit, but it will cause massive job-losses in dairy farming and will ruin the decades of efforts went into building the robust dairy structure in the country," a private player said.

The concern was raised in previous meeting by the cooperatives and private dairies that allowing cheaper imports from surplus countries will disrupt the livelihood of the millions in dairy farming consequently forcing them to quit the sector. This is due to the fact that cheaper imports are expected to reduce their incomes by half.

Recently, apex dairy body, National Dairy Development Board (NDDB) had also expressed its view to keep dairy sector out of the purview of RCEP negotiations to safeguard the interests of small and marginal farmers.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.