Dairy cooperatives approach Centre, seek export incentives to tide over COVID-19 crisis

Milk cooperatives have approached the Centre and asked for export incentives to help tide over the COVID-19 crisis. Cooperatives have sought a scheme to distribute milk in anganwadis, schools, and hospitals that treat coronavirus patients to reduce inventories of unsold skimmed milk powder (SMP) and other products.

The cooperatives have claimed that they would be forced to cut down their milk procurement price in the coming months if the support is not made available. Till now, the cooperatives, unlike their private counterparts, have managed to hold on to the procurement price despite a sharp drop in demand, reported Business Standard.

The demand for milk and milk products witnessed a steep decline due to the COVID-19 induced nationwide lockdown, which forced hotels, restaurants, sweetmeat shops to remain shut. While the lockdown has been lifted, things are yet to normalise.

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The cooperatives have sought to bring dairy products under the ongoing Transport and Marketing Assistance Scheme (TMAS) for agriculture products. Additionally, they want export incentives on the revamped Merchandise Exports from India Scheme (MEIS) to be raised to 20 percent from the present 5 percent .

The cooperatives have also demanded some concession on import of capital goods and also entrusting the states to explore export opportunities for skimmed milk powder in neighbouring countries.

"We also want the Centre to launch some programme so that milk can be distributed to aangwandi centres, hospitals for COVID patients and other," an official told Business Standard.