NEW DELHI: The Finance Ministry on Monday announced a hike in import duty on ghee, butter and butter oil by 10 percentage points to safeguard the interest of domestic dairy farmers and industry.
The import duty stands increased to 40 per cent from 30 per cent and will be valid till March-end next year, Revenue Secretary Hasmukh Adhia told reporters here.
He said the Finance Ministry would be ready to take more such action on other commodities in the wake of depressed prices in the global commodity markets. The decision to hike import duty on ghee, butter and butter oil was taken based on a request from milk producers seeking duty protection as there was a big drop in the prices of ghee, butter oil and butter in the international markets.
“We are very cautious of the fact that the domestic industry may need some protection looking at the global situation. We are open to the idea. But the industry has to approach the respective authority,” Adhia said.
He said the authorities cannot suo motu take decisions on levy of anti-dumping or safeguard duty and that Indian industry has to make a formal complaint. Domestic dairy companies welcomed the Finance Ministry’s move to increase customs duty on ghee, butter and butter oil. With low milk prices prevailing globally and Indian milk prices largely being firm, this offered a window of opportunity to bring in cheaper milk products into the country, they said. Rs. Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation (Amul), said this was a good move that would help Indian dairy farmers and encourage them. Cheaper imports of ghee, butter and butter oil were resorted to for short-term gains, he noted.
Sanjeev Aggarwal, Director, SMC Foods, said there was a threat of increase in ghee, butter and butter oil imports. The government’s move has come at the right time or it would have been too late, he added.
