Standing committee suggests 100% duty on dry milk import

Members say decision would help farmers and consumers.

ISLAMABAD: To protect local farmers, the National Assembly (NA) Standing Committee on National Food Security and Research has urged the government to impose 100% duty on the import of dry milk by multinational companies.

During a meeting of the NA committee, the members criticised importing of dry milk despite local availability of the product. The import does not only damage the interest of local producers, but it is also a waste of foreign exchange.

“Last year, only Nestle imported dry milk worth Rs10 billion, which to a great extent damaged the interest of local farmers,” said MNA Rao Muhammad Ajmal Khan. The idea was also endorsed by other members of the committee and recommended that the government impose 100% duty on the import of milk products.



Khan noted that Nestle sold milk at Rs120 per kilogramme (kg) in the market, while local farmers sold it at Rs35/kg.

“The government needs to take appropriate steps to handle the situation,” the member said.

The step would not only benefit the local milk producers, but consumers will have a greater benefit due to the availability of cheap milk, he maintained.

Khan stated that earlier last year, when he tried to put forth the issue with the Federal Board of Revenue (FBR) officials, Nestle’s CEO held meetings with Ishaq Dar, and influenced their decisions.

“Due to multinational companies, local milk producers are suffering, which promotes poverty in rural areas, where milk is the main source of livelihood,” MNA Khalida Mansoor.

Published in The Express Tribune, February 25^th,  2015.

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