India hikes duty benefits to milk products like yogurt, cheese to boost exports

The government has again hiked duty benefits for exports of as many as 28 milk related products such as cheese and yogurt under a scheme to boost their overseas shipments.

The duty benefits were enhanced under the Merchandise Export from India Scheme (MEIS).

Under this scheme, the government provides 'duty credit scrip' to exporters. The rates vary from product to product and the export destination, as envisaged in the foreign trade policy.

Rewards under the scheme are payable as a percentage of realized free-on-board value and MEIS duty credit scrip can be transferred or used for payment of a number of duties, including the basic customs duty.

"The MEIS benefit for certain items have been enhanced to 20 percent from the current 10 percent," the Directorate General of Foreign Trade said in a public notice.

The products which would enjoy the incentive include buttermilk, fresh cheese, grated or powdered cheese, skimmed milk, milk food for babies, whole milk and condensed milk

The move assumes significance on account of a milk crisis in Maharashtra. Milk growers had strongly protested in some parts of Maharashtra due to falling in milk prices amid huge supply.