Increased tariff urged on imported milk

DAIRY INDUSTRY: The local fresh milk producers have urged to increase the tariff on imported milk powder to facilitate the local fresh milk industry.

President of the Dairy Development Milk Procurement and Milk Processors' Association D. R. Subasinghe told Daily News there is a 10% tariff on imported milk powder at the moment. This should be increased to 30% and in other SARRC countries tariff on import of milk powder is more than 35 percent.

In Japan they have 200% tariff and in countries like Australia and New Zealand the tariff is 80%. 'It is essential to have a high tariff on the milk powder to safeguard the local fresh milk industry. If there is a higher tariff on milk powder, price per litre of fresh milk will increase. It will result in increase the fresh milk production in the country, he said.

There was a significant growth in fresh milk production in past three years due to the price increase for fresh milk. At present a litre of fresh milk is sold at a price of Rs. 20, Subasinghe said.

The high interest rate is another obstacle for the local dairy industry. In Australia farmers need to pay 4 percent and in India it is 8 percent. Cattle thieves are also a huge impediment to the development of the industry, he added.

There are nearly 3000 milk farmers in Sri Lanka and each farmer produces nearly 5 litres of fresh milk per day.

According to the Department of Census and Statistics the average monthly milk production was 13,484,700 litres last year and it was 13,308,000 in 2004. The total milch cows recorded was 508,117 in last year.

'Meanwhile the Government has decided to regulate advertising of branded powder milk to promote fresh milk in the country without banning advertisements.