The Indian government has reaffirmed its commitment to existing import duty structures for key agricultural products, according to senior officials.
This decision impacts milk, milk products, corn, and vegetable oil imports, maintaining the current tariff levels established in accordance with World Trade Organisation (WTO) agreements from 2004-2005.
Santosh Kumar Sarangi, Director Generalof Foreign Trade, stated that no concessional duties on milk and milk product imports have been implemented since 2014-15.
This policy aligns with India’s market access commitments under the WTO Agreement on Agriculture (AoA), which was ratified in 1994 following the Uruguay round of trade negotiations.
The AoA stipulated a reduction in import duties by 2000 for developed nations and by 2004 for developing countries like India.
A commerce ministry official, speaking on condition of anonymity, emphasised that India has successfully protected its agricultural and animal husbandry interests within this framework.
Tariff Rate Quotas (TRQs), which allow specified quantities of certain products to be imported at reduced duty rates, have seen limited use in recent years.
Data indicates that TRQs for milk and cream in powder, granules, or other solid forms have not been utilised since 2012-13.
Sarangi noted that in the past two decades, milk and milk product imports under TRQ have occurred only in three years: 2009-10, 2010-11, and 2011-12.
The TRQ mechanism includes various safeguards to regulate imports. Only designated entities such as NAFED, NDDB, NCDF, and CWC are permitted to apply for TRQs, and historically, these applications have been made based on specific inter-ministerial recommendations that consider both producer and consumer interests.
This policy stance underscores India’s commitment to balancing international trade obligations with the protection of domestic agricultural sectors.