Sri Lanka should discourage importing powdered Milk which would result in the increase sale of local fresh milk and protect the local dairy farmer, said Chairman MasterDivers and Plewatta Sugar, Ariyaseela Wickramanayake.
If this is done Sri Lanka would be able to export powdered milk to countries like, Bangladesh, Middle East and China in a couple of years.
He said that the government should seriously look at introducing a permit for fresh milk importers similar to maize importation.
"This would certainly put a 'check' on milk imports as they have to seek permission from government at regular intervals."
He said Sri Lanka a few years ago had signed an agreement with the World Trade Organization (WTO) which prevent the government from increasing import tax more than 20%.
Speaking on the issue where the dairy farmers had to discard their fresh milk he said that it was because the local manufactures could not face the international competition and other local tax issues.
He explained that the government fulfilling an election pledge made by President Maithripala Sirisena asked us to purchase a liter of fresh milk at Rs. 70 which is Rs. 20 more.
"The government also ordered us to sell locally produced powdered milk at a reduced price of Rs.100. Though the government promised a subsidy of Rs. 70 per kilo we are yet to receive this. The industry cannot sustain this mismatch which has resulted in our 'buying power' being reduced. The end result is that the dairy farmer suffers without being able to sell their fresh milk. "
He explained that in contrast milk producing countries have excess milk and they have selected Sri Lanka as a country for 'dumping' them. He also said that during the presidential election the import duty of a kilo of milk powder was reduced from RS. 235 to 135. "However we made a representation to Prime Minister, Ranil Wickramasinghe and this has now increased to Rs. 235 again."
Wickramanayake said that Sri Lanka annually spends US $ 400 million for the import of powdered milk. There are two powdered milk manufactures, Palwate and Highland and more than 40 fresh milk producers which fulfill 55% of the local demand. "Sri Lanka has 240,000 milking cows and if the government supports the industry Sri Lanka can not only be self sufficient in milk but can be an exporter of powdered milk as in the case of butter. Then Sri Lanka can stop sending 'women' abroad for labour and instead export milk."
He said that the saw this potential and invested nearly Rs. 2.2 billion over the period of four years to have two plants in Buttala.
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If this is done Sri Lanka would be able to export powdered milk to countries like, Bangladesh, Middle East and China in a couple of years.
He said that the government should seriously look at introducing a permit for fresh milk importers similar to maize importation.
"This would certainly put a 'check' on milk imports as they have to seek permission from government at regular intervals."
He said Sri Lanka a few years ago had signed an agreement with the World Trade Organization (WTO) which prevent the government from increasing import tax more than 20%.
Speaking on the issue where the dairy farmers had to discard their fresh milk he said that it was because the local manufactures could not face the international competition and other local tax issues.
He explained that the government fulfilling an election pledge made by President Maithripala Sirisena asked us to purchase a liter of fresh milk at Rs. 70 which is Rs. 20 more.
"The government also ordered us to sell locally produced powdered milk at a reduced price of Rs.100. Though the government promised a subsidy of Rs. 70 per kilo we are yet to receive this. The industry cannot sustain this mismatch which has resulted in our 'buying power' being reduced. The end result is that the dairy farmer suffers without being able to sell their fresh milk. "
He explained that in contrast milk producing countries have excess milk and they have selected Sri Lanka as a country for 'dumping' them. He also said that during the presidential election the import duty of a kilo of milk powder was reduced from RS. 235 to 135. "However we made a representation to Prime Minister, Ranil Wickramasinghe and this has now increased to Rs. 235 again."
Wickramanayake said that Sri Lanka annually spends US $ 400 million for the import of powdered milk. There are two powdered milk manufactures, Palwate and Highland and more than 40 fresh milk producers which fulfill 55% of the local demand. "Sri Lanka has 240,000 milking cows and if the government supports the industry Sri Lanka can not only be self sufficient in milk but can be an exporter of powdered milk as in the case of butter. Then Sri Lanka can stop sending 'women' abroad for labour and instead export milk."
He said that the saw this potential and invested nearly Rs. 2.2 billion over the period of four years to have two plants in Buttala.
www.dailynews.lk
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