FNB News - Assocham welcomes govt plan for creation of a Milk Grid in SAARC region

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Assocham welcomes govt plan for creation of a Milk Grid in SAARC region

Thursday, 02 July, 2015, 08 : 00 AM [IST]

Our Bureau, Mumbai

ASSOCHAM has commended the government’s plan for creation of a ‘Milk Grid’ in the SAARC region to overcome the inter-regional difference between supply and demand of milk. The grid aims to suitably link milk-surplus nations with deficit nations to improve efficiencies in the region. Under the South Asia Free Trade Area (SAFTA) agreement, the Indian government plans to negotiate for a tariff under 5% which will boost the trade among SAARC countries.

SAARC (South Asian Association for Regional Cooperation) countries like Bangladesh, Bhutan and Sri Lanka import milk and milk products to meet their domestic demand, while India holds the leadership position in milk production. With an annual production of approximately 140 million tonne, India accounts for 17% of world milk production. ASSOCHAM (Associated Chambers of Commerce & Industry of India) firmly believes that the concept of a ‘Milk Grid’ needs a serious push so that millions of dairy farmers and milk processors in this region can have seamless trade across the countries.

For establishment of a sustainable milk grid the following will play a crucial role: Reduction in tariff barriers under SAFTA can immensely boost trade in the region; Strengthening of milk production system through regional collaboration and forming an aggregate supply system through farmer-producer organisations; Revamping of dairy value chain through investments in cold chain infrastructure will enable faster movement and better quality of milk and value-added products; and Regional joint ventures in milk processing and value-added dairy products will give a boost to the dairy economy and transfer of technology across the region.

“Currently most SAARC countries, including India, have milk in their sensitive list, on which concessional tariffs don’t apply. With the expected increase in per capita consumption in these countries, a strong milk grid is required to meet the future demand,” stated Rana Kapoor, president, ASSOCHAM.