(a) whether milk and other milk products are being imported in the country;
(b) if so, the reasons therefor;
(c) the countries from which these products are being imported;
(d) whether there is any compulsion for India to import these milk products even though our
country has achieved white revolution; and
(e) if so, the details of these compelling situations under which milk products are being
imported?
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
( SHRI OMAR ABDULLAH )
(a) to (e) : India has been following a consistent policy for gradual removal of restrictions
on imports since 1991. Tariff line- wise import policy was first announced on 31.3.1996. As
on that date, import of 6161tariff lines (at 10 digit level) out of the total number of 10202
was free. Import restrictions on 488 tariff lines were removed during the period 1.4.96 to
31.3.97. Further 391 tariff lines (at 8 digit level) were freed during the period 1.4.97 to
13.4.98 and 894 tariff lines (at 8 digit level) were freed on 1.4.99. Import restrictions on
714 tariff lines were removed on 31.3.2000. The items on which import restrictions have been
removed include milk and milk products. Import of skimmed milk powder is free since 1995.
Import restrictions have been removed in line with the economic liberalization policy
being followed since 1991 and also in accordance with country`s commitment to multilateral
trading regime.
In view of the fall in international prices of milk powder and the prevailing 0% rate
of customs duty, milk and cream worth Rs.96.89 Crores was imported during the year 1999-2000,
mainly from Europe and Australia. Subsequent to this, Government has successfully renegotiated
the existing 0% bound rate of duty on milk powder including skimmed milk powder (as classified
under Exim Code No. 0402.10 and 0402.21 of ITC(HS) Classifications of Export and Import Items,
1997-2002 ) to 60% with a provision for allowing 10,000 MT of these products at a concessional
duty rate of 15% under Article XXVIII of GATT. The imports of milk and cream during the period
April-July 2000 has already come down to Rs.4.47 Crores. This increase in duty should provide
necessary protection to the domestic milk producers.