Russia is ready to import hard cheese from India, if Indian government agrees to the conditions laid down by the Russian government. However, Indian government fears that if it agrees to sign the protocol, only two dairy players will qualify while missing out almost all the dairy players from India.
In this regard, the Russian government has put forward a rigid condition that every dairy business operator from India who is keen to export to Russia, has to have a livestock of at least 1,000 cattle heads to be eligible. This has posed as a huge hurdle for the dairy industry in India as most of the dairy businesses in India depend on cooperatives to procure milk.
R S Sodhi, MD, Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) [Amul], states, “The demands put before the Indian dairy players by the Russian government are highly impractical, 1,000 cattle cannot satisfy a huge consumer base of Amul. Thus, we have cooperative model. Even if we take it as a mandatory requirement, how can we stand before the competition on foreign soil?”
He adds, “We need to have more milk procurement to satisfy foreign demands. One-thousand cattle can generate a maximum of 40,000 litre of milk, which is very less. We have several products on our portfolio at Amul. How to meet huge demands with such a small quantity of milk? Amul has a cooperative model of operation, which enables us to procure more.”
Sodhi states, “We also have asked Indian government to convey this to the Russian government. The demands they are making are impractical.”
Nevertheless, the protocol is expected to establish a new market for Indian dairy players. In the past, Amul had appreciated the protocol as it will open new markets for the dairy industry.
Throwing light on the issue, Anup Chatterjee, director, business development, Schreiber Dynamix Dairies, Pune, Maharashtra, comments, “Russia has a huge demand for cheese. Russians have a habit of eating cheese. Russian government has imposed sanctions on imports from the European Union. This is a result of not following the Russian guidelines. This can be a warning that Russian government is strict with its laws.”
He further states, “The representatives from the Russian government have already visited Indian dairies earlier and have selected only two dairy players from India who matched their requirements. Schreiber Brazil is already one of the prime exporter of dairy products and solutions to Russia. We are seeking real business out of this deal.”
Officials of Export Inspection Council (EIC) are said to have prepared guidelines for disease-free procurement of milk but these have been delayed due to the pending approval from ministry of industry and trade, India.
Meanwhile, various suggestions were put forth during the dialogue with the Russian government's representative. A source close to the ministry, states, “We suggested that one can put up a checkpost at the milk procurement centres where a clearance certificate can be issued to ensure that the milk procured is free from contaminants and other illnesses.”
In conclusion, a source from dairy industry, states, “Amul and other dairy players are seen lobbying to seek a revision in the consideration of the dairy protocol, which is delaying the protocol.”
