Amul sends SOS to Prime Minister as input costs rise

Federation MD B M Vyas said,“Milk prices directly affect the livelihood of the country’s farmers,including landless and marginal farmers.” The GCMMF has under its umbrella 13 cooperative unions of Gujarat.

The memorandum,which is signed by all the 13 chairmen of the unions,urged the PM to discourage the import of milk products and butteroil,impose additional duty on the export

of oilmeals,de-oiled cake,cattle-feed and deduction of

VAT on all value-added dairy products. The increase in the prices of cattle-feed has affected several milk farmers and will cripple the dairy cooperative industry,if not controlled,it added.

The memorandum further said that the export of oilmeals has increased considerably in the last two years,which has led to an increase in the feeding cost to the animal. This ultimately increases the production cost of milk,which contributes to inflation in the consumer prices of milk.

“This year,the prices of cattle-feed have gone up by 30 to 40 per cent after cutting the subsidy given by the government. This has further affected the earnings of the farmers,while the prices of milk have gone up,” said Jayant Mehta,general manager (planning and marketing) GCMMF.

He added,“At Rs 2.25 lakh crore in terms of value,milk contributes the highest to the total output of the agricultural sector,surpassing the output value of wheat,rice and oilseeds.”

The demands
* Reduce I-T on co-operatives
* Impose 25% export duty on oilmeals,de-oiled cake and cattle-feed
* Waive Excise Duty on molasses used in production of cattle-feed
* Reduce existing I-T rate from 30 to 15%; remove education and higher education cess
* Allow weighted deduction of 125% of expenses under Section 35 CCA of I-T Act
* Fix VAT on all value-added dairy products at 4%