Dairy sector seeks duty cuts to spur growth, demand

In a bid to promote the processing and packaging of milk in the country, the dairy sector has sought exemption of excise duty and value added tax (VAT) on equipment and machinery in the upcoming Union Budget. Besides, the industry has also sought a uniform VAT rate on all milk products at 4 per cent, which could help drive consumption of such products. The Indian Dairy Association believes that duty exemption on equipment and machinery would encourage more investments in processing and packaging of milk and milk products. Only 15 per cent of the milk produced in India is processed and packed, thereby leaving scope for adulteration, unhygienic handling and distribution. About 46 per cent of the milk produced in India is in liquid form.

Source: The Hindu Business line