Consumers in India will now have a wider variety with the full-scale dismantling of the remaining import curbs at one stroke in the Export-Import (Exim) Policy for 2001-02 announced by the Government of India on March 31, 2001. It signals the domestic industry to shape up or ship out as they will have to compete with global players.
Quantitative restrictions (QRs) have been removed on the import of baby food, SMP, WMP, butter, dairy spreads, ghee, fresh and other cheeses, including processed cheese. These dairy products are among the 715 items on which QRs has been lifted. In addition, import of second-hand capital goods, including equipment, that are less than ten years old will be allowed without obtaining any licence.
The range of basic import duty on the dairy products listed is from 35 to 60 per cent (which can be raised to 120 per cent bound rate duty, if necessary). Any amount of butter and cheese can now be imported on payment of the prescribed customs duty.
The Exim Policy has also made it clear that all imported edible/food products would have to meet the conditions of the Prevention of Food Adulteration Act, 1954 and Rules, 1955 which are currently applicable to products that are manufactured and sold in India. They lay down the definitions and standards of quality for all food commodities. Some of the PFA regulations also deal with labelling requirement, the use of permitted natural and synthetic colours and flavouring agents. It is also mandatory to print the "best before date" along with the month and year. The Act also provides for sampling, inspection and confiscation of food items, along with prescribed penalties for violation. Compliance with these conditions is to be ensured before allowing Customs clearance of the consignment.
Also, all farm commodities and food items will also have to meet the Indian regulations covering health and hygiene. In addition, India's Ministry of Agriculture will issue a bio-safety and SPS (Sanitary and Phyto-Sanitary) permit that will have to be produced before the Customs Officer.
A Standing Group comprising Secretaries of Ministries of Commerce, Revenue, SSI & ARI, Animal Husbandry and Dairying and DGFT would function as a 'war-room' for tracking, collating and analysing data on some 300 "sensitive items of importance to the public". These include dairy products. Every month, the Government would publish a monthly statement about import-status of these items.
The removal of QRs, however, would not leave the Government of India completely exposed. It would still retain three options - import duties, anti-dumping steps and safeguard measures. In the event of unfair trade practices like dumping or subsidization of exports by other countries that may cause injury to the domestic industry, protection under safeguard provisions like the enhancement of import duty, re-imposing of QRs as per WTO regulation, etc, will be available.
The new Exim Policy also places emphasis on promotion of agricultural exports including an appropriate agricultural export policy and launch of Agri Economic Zones, besides extending the Exim schemes such as the Duty Exemption Scheme and the Export Promotion Capital Goods Scheme (EPCG) to the agro sector as well. Yet another step is the Market Access Initiative to underpin industry in R&D, market research, specific market and products studies, warehousing and retail marketing infrastructure in select countries and direct market promotion activity and buyer-seller meets.
Indian Milk Products Export Regulation Order
The Government of India has notified an order for regulating the exports of milk products from India that calls for subjecting them to quality control inspection prior to their export. These rules aim to help develop India's dairy export. It takes into account the demands and requirements of the world dairy market with the regard to such factors as quality, health requirements, management practices and processing norms.
This comprehensive order bears the title of "Exports of Milk Products (Quality Control, Inspection and Monitoring) Rules 2000" and has come into effect last month from December 12, 2000.
It covers animal health, hygiene in milking production, collection, storage and transportation. It also specifies levels of residues permissible in milk products, microbiological criteria for milk products, packaging, marketing and labelling, storage and transportation requirements, as well as management of herds and dairy plant, employee hygiene and the like.
These rules also mark an important step in upgrading the dairy trade within India and bringing about quality consciousness at all levels of dairying -- from producer to the consumer.
Reference: Indian Dairy website. For any specific details, please write to: news@IndiaDairy.com
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