The Indian Government which is planning to include dairy products in the Regional Comprehensive Economic Partnership (RCEP) trade deal. For this India will be importing different dairy products from other countries.
It is speculated that the import of cheaper milk and milk products would adversely hit the livelihood of diary manufacturers in India.
One of the reputed dairy companies of orange city has stated that “this deal is yet to be finalised and government is still planning on the trade deal. Although we do not have any problem with it as this will not affect us. India being the largest milk producers with a gradual increase 6-7% production we will be less affected as at the initial stage they have decided to import milk powder. Import of production is only done when the production value of that same product in the country is more but in this case. We are receiving huge demand as the festival season is on. Secondly this move will also be beneficial for the local companies as it will bring new products in the market and will increase the level of competition”.
The government is contemplating to finalise RCEP, a trade block which includes China, Australia and New Zealand, apart from 10 ASEAN countries, Japan and South Korea. New Zealand and Australia are negotiating very hard with India to reduce duty on dairy products so that they can get an access to India, which is the world’s largest market of dairy products.
According to a report brought out by Niti Aayog in Feb 2018, the demand for milk will be 292 million tonnes (mt), against which India will produce 330 mt milk by 2033. Thus, India will be surplus in milk products.