Over $72 million dry milk powder imported since 2010: Pakistan's reliance on 'protectionist' India growing

The Government of Pakistan whereas appears to have little or no attention towards the prevailing alarming situation, the ever-increasing imports of dry milk powder from neighbouring India, the industry stakeholders apprehend, are putting to risk the survival of dairy farming industry in Pakistan. The local dairy farmers are said to have started selling their milk-producing animals to the country's slaughter houses, as increased imports of dairy related products from "protectionist" India has rendered dairy farming an unattractive business for them.
According to industry sources, Pakistan's import of skimmed milk powder during last five years from India weighed over 21.48 million kilograms (KGs) valuing more than $72.3 million. Pakistan, the world's third largest milk producing country with over 35 billion liters annual output, imported 8.043 million kg of dry milk powder in 2014, 9.077 million in 2013, 2.65 million in 2012, 0.539 million in 2011 and 1.168 million in 2010 from its hostile neighbouring country.
For above imports, the dollar-hungry country paid $30 million each in 2014 and 2013, $7.8 million in 2012, $2 million in 2011 and $2.5 million in 2010. Overall, the sources said, the import of skimmed milk powder and whey powder in Pakistan had skyrocketed during last decade, especially in five years. Citing the United Nations' Comtrade database, they said, the country had imported 33.5 million KGs of skimmed milk powder worth $117 million in 2014, 22 million KGs worth $70.7 million in 2013 and 35 million KGs worth $102.1 million in 2012.
"These numbers pose a shame to us, the world's third largest milk producing nation," lamented a representative of dairy farmers. Contrary to countries like Pakistan which were paying little or no attention to its dairy sector, New Delhi is heavily subsidising agriculture inputs for its farmers. "Their produces are procured at hand by the local industry to be converted into exportable skimmed milk," he said. The representative warned that the present government, which was more focused on urban development, must not forget that the agriculture sector still contributed more than 22 percent in the country's GDP. The livestock had 55 percent share in the overall agriculture output.
"If we ignore our livestock sector, we are ignoring 12 percent of our GDP," he added. Industry sources claimed that India, being Pakistan's neighbour, was taking full advantage of lower import duties and lax import regulations for skimmed milk powder and whey powder import in the country. Belonging to a SAARC member country, Indian skimmed milk exporters were enjoying a low 20 percent import duty in Pakistan whereas India itself had imposed 68 percent import duty for skimmed milk powder and whey powder. That was why, they viewed, India had been able to dump millions of kilograms of skimmed milk powder in Pakistani market.
The Government of India offered several incentives to dairy farming sector to ensure the production cost for the farmers remained low. In agriculture sector, it subsidises fertilizer, electricity and even provides free electricity for irrigation purposes that finally reflect positively on the production cost of agri and dairy products. Also, the Indian government provides grants and interest-free financing to small farmers having up to 10 animals, the sources said. A dairy farmers' representative said dairy farming sector in Pakistan was on the verge of collapse due to ever-increasing imports of milk powder and whey powder (MP&WP) from outside the country.
He said the use of MP&WP in the dairy processing industry, dairy related products, biscuits, sweet making, confectionary industry and tea whitening segment had deprived the local farmers from getting the right price of their produces. "We need to learn from Turkish government that in order to encourage local milk production and to be self-sufficient imposed 180 percent import duty on import of milk powder," he said.