The Indian government has decided to keep import duties on key agricultural products unchanged, affecting items like milk, milk products, and vegetable oil. These tariffs, set according to World Trade Organisation (WTO) agreements from 2004-2005, remain the same to protect India’s agricultural interests.
Santosh Kumar Sarangi, Director General of Foreign Trade, confirmed that no concessional duties on milk and milk product imports have been applied since 2014-15. This policy aligns with India’s commitments under the WTO Agreement on Agriculture (AoA), ratified in 1994. The AoA required developed countries to reduce import duties by 2000 and developing countries like India by 2004. A commerce ministry official noted that India has effectively safeguarded its agricultural and animal husbandry sectors within this framework.
Tariff Rate Quotas (TRQs), allowing specific quantities of products to be imported at lower duty rates, have seen limited use recently. Data shows TRQs for milk and cream in powder, granules, or other solid forms haven’t been used since 2012-13. Sarangi mentioned that in the last two decades, milk and milk product imports under TRQ occurred only in 2009-10, 2010-11, and 2011-12.
The TRQ system includes safeguards to control imports, allowing only designated entities like NAFED, NDDB, NCDF, and CWC to apply for TRQs based on inter-ministerial recommendations considering producer and consumer interests. This policy highlights India’s commitment to balancing international trade obligations with protecting domestic agriculture.