The Indian dairy industry hopes to see polices that would favour its future growth prospects in the 2017 Budget. This was stated by Devendra Shah, chairman and managing director, Parag Milk Foods. He added that the agriculture sector had been impacted by demonetization.

“The consequent delay in the sowing of the rabi crop, together with the unpredictable monsoons, are driving the Indian farming community to look at a viable revenue generation from the dairy sector,” Shah said.

In his pre-budget suggestions, the Parag Milk Foods chief suggested that the government, which is working to implement a cashless economy which supports long-term economic growth, offer a subsidy on the purchase of milk from farmers under cashless conditions.

“This would provide the much-needed dual advantage of supporting farmers from the vagaries of monsoon and making the economy a cashless one,” he added.

“Dairying in India is an integral part of our society. No other industry can claim to touch the lives of millions of farmers, over half of whom are landless. Given the market access and remunerative prices to farmers, dairy can become a potent tool for equitable growth and income distribution,” Shah said.

“Genuine impetus to the dairy sector leading to its growth will lead to that elusive balanced and inclusive growth where our villages progress,” he added.

The private dairy majors also pressing for investment in cold chain infrastructure and support in terms of subsidy and tax relief be granted.Proper packaging of milk products is essential to help maintain quality, longer shelf life and to keep it fit for human consumption.

“Packing of milk products should also be construed as processing for preservation and the packaging industry and should be exempt from all duties including excise, Central sales tax (CST), octroi, etc. In addition, all machinery and equipment used by the industry should be exempt from import duty,” stated Shah.

“When the government is giving a thrust to increase the milk production, then there should be ample facilities to handle it. But in reality, there is adearth of infrastructures like chilling plants and bulk coolers. This results in wastage due to spoilage,” he added.

“The paucity of refrigerated vans and insulated tankers to ferrythe chilled milk to the processing plants is another issue.The government needs to earmark funds for the same,” he suggested.