Transcript
A
GLOBAL / COUNTRY STUDY AND REPORT
ON
PRESENT TRADE BARRIERS FOR IMPORT / EXPORT OF SELECTED GOODS”
&
POTENTIAL FOR EXPORT / IMPORT IN INDIA / GUJARAT MARKET ”
UNDER THE GUIDANCE OF
PROF. Khyati Patel
SUBMITTED BY
Prexa Shah 107100592036
Dipali Davda 107100592027
Ripal Shah 107100592013
Jignasha Makawana 107100592039
Arti Solanki 107100592031
Ketu Patel 107100592044
[Batch: 2010-12]
MBA SEMESTER III/IV
DALIA INSTITUTE OF MANAGEMENT
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
DALIA INSTITUTE OF MANAGMENT Page I
STUDENTS’ DECLARATION
We hereby declare that the report for Global/ Country Study Report entitled
“Potential for Export / Import in India / Gujarat Market” and Present Trade
barriers for import / Export of selected goods is a result of our own work and our
indebtedness to other work publications, references, if any, have been duly
acknowledged.
Place : Kanera
Date : Name Of The Student :
Prexa Shah
Dipali Davda
Ripal Shah
Jignasha Makwana
Arti Solanki
Ketu Patel
DALIA INSTITUTE OF MANAGMENT Page II
INSTITUTE’S CERTIFICATE
“Certified that this Global /Country Study and Report Titled “Potential for Export /
Import in India / Gujarat Market” and Present Trade barriers for import / Export
of selected goods is the bonafide work of Ms. Prexa Shah, Dipali Davda, Ripal
Shah, Jignasha Makawana, Arti Solanki, Ketu Patel.
Guide Name: Prof. Khyati Patel Director: Dr. Pradip Desai
Sign: Sign:
Date:
Place: Kanera
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PREFACE
In M.B.A program, students have to make a Global / Country Study project report as a
part of curriculum course. The objective behind preparing this report is to understand
about Potential for Export / Import in India / Gujarat Market” and Present Trade
barriers for import / Export of selected goods.
The successful completion of this project was a unique experience for us. We
achieved a better knowledge about Potential for Export / Import in India / Gujarat
Market” and Present Trade barriers for import / Export of selected goods. The
experience which we gained by doing this project was essential at this turning point
of our career this project is being submitted which content detailed analysis of the
research under taken by us.
The Study provides an opportunity to the students to devote their skills knowledge
and competencies required during the technical session.
This document forms a report of our project, outlining the research design elements
and methodology. Also, helped us to know and understand the implication of the
research on the future market expansion and growth.
The preparation of this project report is based on facts & findings during the research
work & information collected on the basis of outside Sources like Annual Report Of
Amul, Internet Sources, Latest Bulletin etc. The scope of the project report is to study
global opportunity of Amul at Qatar Country. Our work in this project is, therefore, a
humble attempt towards this end.
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ACKNOWLEDGEMENT
It was a great opportunity for us to study on Key Indicators. We are extremely
grateful to all those who have shared their expertise and knowledge with us and
whom the completion of this project would have been virtually impossible.
Firstly, we would like to thank our Faculty Guide Prof. Khyati Patel who has been a
constant source of inspiration for us during the completion of this project. She gave
us invaluable inputs during our endeavor to complete this project.
We want to give our special thanks to all members of Dalia Institute of Management,
for providing us opportunity to work on this project with this great organization and
we would also like to thank all the respondents met in the preparation, who gave
their valuable time to provide us required information and their honest support to
complete our project in time.
Last but not the list we are great full to GUJARAT TECHNOLOGICAL UNIVERSITY
for including the project as a part curriculum of MBA programme with which we got
the experience of challenging exercise in the research and survey conducted.
Name:
Prexa Shah
Dipali Dawada
Ripal Shah
Jignasha Makawana
Arti Soalnki
Ketu Patel
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TABLE OF CONTENTS
SR. NO. PARTICULARSPAGE
NO.
Institute Certificate I
Candidate Statement II
Preface III
Acknowledgement IV
PART-I PRESENT TRADE BARRIERS OF IMPORT /
EXPORT OF ANY GOODS
1
1. Introduction Of Trade Barriers 2-3
1.1 Trade Barriers Of Qatar 4-7
1.2 Import Policies Of Qatar 8-9
1.3 Foreign Trade Control: Qatar 10-13
1.4 Trade Barriers In India 14-15
1.5 Non Tariff Measures Of Amul 16-17
PART-II POTENTIAL FOR EXPORT / IMPORT IN INDIA /
GUJARAT MARKET
18
2. India-Qatar Bilateral Economic Relation 19-20
2.1QATAR – Domestic Production V/S Import
Of Major Dairy Products Segment21
2.2 Role Of India In Exporting Dairy Products 22-23
2.3 Export Potential Of Dairy Products 24-25
2.4 Steps Intiated By APEDA 26
2.5 Certification Scheme For Indian Dairy Products
27-28
2.6Strategy for Promoting Dairy Exports from
India29-30
2.6The Gujarat Cooperative Milk Marketing
Federation Ltd, Anand (GCMMF)31
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2.7 Role Of Exports Of GCMMF 32-33
2.8 New Amul Products Introduced In Qatar 34-38
2.9 Export Prospects Of Amul 39-40
2.10Major Challenges Of Amul In Promoting
Export41-42
BIBLIOGRAPHY 43
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INTRODUCTION OF TRADE BARRIERS
The most common barriers to trade are tariffs, quotas,
and nontariff barriers. A tariff is a tax on imports, which is
collected by the federal government and which raises the
price of the good to the consumer. Also known as duties or
import duties, tariffs usually aim first to limit imports and
second to raise revenue.
A tariff is a tax. It adds to the cost of imported goods and is one of several trade
policies that a country can enact. A quota is a limit on the amount of a certain type of
good that may be imported into the country. A quota can be either voluntary or
legally enforced. Tariffs are often created to protect infant industries and developing
economies, but are also used by more advanced economies with developed
industries.
The effect of tariffs and quotas is the same: to limit imports and protect domestic
producers from foreign competition. A tariff raises the price of the foreign good
beyond the market equilibrium price, which decreases the demand for and,
eventually, the supply of the foreign good. A quota limits the supply to a certain
quantity, which raises the price beyond the market equilibrium level and thus
decreases demand.
Tariffs come in different forms, mostly depending on the motivation, or rather the
stated motivation. (The actual motivation is always to limit imports.) For instance, a
tariff may be levied in order to bring the price of the imported good up to the level of
the domestically produced good. This so-called scientific tariff—which to an
economist is anything but—has the stated goal of equalizing the price and, therefore,
“leveling the playing field,” between foreign and domestic producers. In this game,
the consumer loses.
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Nontariff barriers include quotas, regulations regarding product content or quality,
and other conditions that hinder imports. One of the most commonly used nontariff
barriers are product standards, which may aim to serve as “barriers to trade.” Other
nontariff barriers include packing and shipping regulations, harbor and airport
permits, and onerous customs procedures, all of which can have either legitimate or
purely anti-import agendas, or both.
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TRADE BARRIERS OF QATAR
Trade Barriers
Internally, Qatar maintains a variety of trade barriers,
which affect foreign investors. Import of religiously or
politically sensitive items may be banned by the
Government of Qatar (GOQ). Prior to closing down the
Arab Boycott of Israel Office in Doha in early 1995, the
GOQ deleted unilaterally some giant foreign firms,
including some U.S. corporations, from the blacklist.
Qatar has lifted the secondary and tertiary aspects of the boycott and an Israeli
Trade Representation Office was established in Doha. Just before the Organization
of Islamic Conference meeting was due to open in November 2000 in Doha,
however, in a very brief statement, the GOQ announced that the Israeli Trade
Representation Office was officially closed.
Tariff and Non-Tariff Barriers
Tariff Rates
In accordance with the GCC Customs Union, outlined in Law No. 41/2002, Qatar
imposes a five percent ad valorem tariff on the C.I.F. invoice value of most
imported products, including food products. The GCC has approved exemptions
for approximately four hundred goods, including: Basic food products (such as
wheat, flour, rice, feed grains and powdered milk), diplomatic and consular
imports, military and security products, civilian aviation, personal effects and used
household items, passenger accompanied luggage and gifts, goods destined for
charitable use, ships and other vessels for the transport of passengers and floating
platforms, and products to be used for industrial projects. Tobacco products and
alcoholic beverages are subject to 100 percent import duty.
Prohibited Imports and USG-Imposed Export Controls
A variety of sensitive items may not be imported into Qatar. The Qatar Distribution
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Company monopolizes the importation of alcohol. Pork and pornographic items may
not be imported. Military and security items are forbidden unless licensed by local
authorities. Narcotics, flammable and radioactive products are also banned, as are
any products that violate trademarks or originate in boycotted countries. Qatar
participates in the primary Israeli boycott; however, an Israeli Trade Representative
Office is located in Doha.
Import Taxes and License Requirements
All importers are required by law to have an import license. Import licenses are
issued only to Qatari nationals and must be registered with the Ministry of Economy
and Commerce. This regulation also applies to wholly foreign owned entities
operating in Qatar.
All imported meats - beef and poultry products, require a health certificate issued by
the country of export and a Halal slaughter certificate issued by an approved Islamic
center in that country.
In Qatar, the letter of credit (L/C) is the most common instrument for controlling
exports and imports. When an L/C is opened, the supplier is required to provide a
certificate of origin, and a certificate from the captain of the ship or from the shipping
agency stating that the ship is allowed to enter Arab ports. An Arab Embassy or
Consulate or an Arab Chamber of Commerce should notarize both documents in the
exporting country.
A letter of credit initiated in Qatar is usually endorsed with transshipment clauses.
Most of the goods imported into Qatar from the U.S. and elsewhere come via the
nearby ports of Dubai and Sharjah, both in the United Arab Emirates (U.A.E.).
Transshipment clauses serve the purpose of advancing those goods from the U.A.E.
to Qatar by land (by truck) and/or sea (by barge). It is customary in Qatar for
importers to build their L/C’s computations on “cost and freight (C&F)” basis, and not
“cost, insurance and freight (C.I.F.)”. Qatari merchants prefer to have insurance
coverage provided by local and international insurance companies, to cover damage
in transit to the goods covered under the L/C.
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NON-TARIFF BARRIERS
Extensive non-tariff barriers are a defining feature of the regional trading
environment. Common barriers include:
exclusive agency requirements
government procurement policies favouring nationals
significant numbers of prohibited imports
restrictive labelling requirements
.Agency Requirements
Use of a local distribution agent is a key legal requirement for exporting to Oman,
Qatar, Kuwait and Bahrain, and general these agents must be nationals or
companies owned by nationals
They are very commonly used because of difficulties in accessing local markets
without them. Restricting agency business to local citizens and granting exclusive
agency rights to import specific products is likely to increase the cost of imported
products and reduce import volumes.
Because of their important role and the difficulty of ending agency agreements,
choosing the right agent is critical for exporters to the Gulf. Government
Procurement Policies Given the state’s dominant role in economic activity in the Gulf,
government procurement policies are a critical market access issue, particularly for
oil and infrastructure projects.
Qatar has the most open government procurement system; invitations to pre-qualify
for bids are advertised in local and international media and via Qatari embassies,
and local agents are not required until contract signing.
Prohibitions on Items
Trade prohibitions also influence regional trade patterns. The UAE has the most
liberal regulations with few bans on imported products, except those from Israel.
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Other Gulf economies often ban imports of religiously or politically sensitive items.
For example, Saudi Arabia and Iran ban imports of pork, alcohol, statues
representing the human form, games of chance and materials offensive to Islamic
morals. Qatar and Yemen also prohibit pork imports while other economies tightly
regulate them.
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IMPORT POLICIES OF QATAR
Tariffs
As a member of the Gulf Cooperation Council (GCC), Qatar
applies the GCC common external tariff of 5 percent for most
products, with a limited number of GCC-approved country-
specific exceptions. Qatar’s exceptions include basic food
products such as wheat, flour, rice, feed grains, and
powdered milk. The tariff on alcoholic beverages and tobacco
products is 100 percent. Qatar is not a signatory to the WTO Information Technology
Agreement.
Import Licensing
Qatar requires importers to have a license for most products, and only issues import
licenses to Qatari nationals. Only authorized local agents are allowed to import
goods produced by the foreign firms they represent in the local market. However,
this requirement may be waived if the local agent fails to provide the necessary
spare parts and backup services for the product. The government has on occasion
established special import procedures via government-owned companies to help
ease demand pressures. For example, in 2006, the government established the
Qatar Raw Materials Company to import construction materials and sell them to
companies in Qatar at a marginal markup (to cover its operating expenses).
Documentation Requirements
To clear goods from customs zones at ports or land borders in Qatar, importers must
submit a variety of documents, including a bill of lading, certificate of origin, invoice,
and where applicable, an import license. The Qatari embassy, consulate, or
chamber of commerce in the India must authenticate all shipping documents,
including the certificate of origin. Commercial consignments lacking a certificate of
origin may be allowed provided the appropriate documentation is submitted within 90
days.
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Government Procurement
Qatar gives preferential treatment to suppliers that use local content in bids for
government procurement. When competing for government contracts, tenders for
goods with Qatari content are discounted by 10 percent and goods from other GCC
countries receive a 5 percent discount. As a rule, participation in tenders with a
value of 1 million Qatari Riyal ($275,000) or less is confined to local contractors,
suppliers, and merchants registered by the Qatar Chamber of Commerce.
Standard, Testing , Labeling, and Certification
As part of the GCC Customs Union, the six Member States are working toward
unifying their standards and conformity assessment systems. However, each
Member State currently continues to apply either its own standard or a GCC
standard, resulting in a complicated situation for some Indian businesses. GCC
Member States do not consistently send notification of new measures to WTO
Members and the WTO Committees on Sanitary and Phytosanitary Measures (SPS)
and Technical Barriers to Trade (TBT) or allow WTO Members an opportunity to
provide comments.
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FOREIGN TRADE CONTROL: QATAR
Imports regulations:
Pork and derived products are prohibited, while the imports of alcoholic beverages,
firearms, ammunition and certain drugs are subject to licensing. Import licenses may
be obtained from the Ministry of Finance, Economy and trade. Import documentary
requirements are as follows:
Commercial invoice:
Two original commercial invoices and at least one copy must be submitted, The
exporter should check with the customer for the specific number of copies required.
The invoice should contain full description of the packing along with the name of the
supplier and the consignee, quantity, marks and numbers of goods, origin of goods,
accurate description of the merchandise, value of the goods, CIF or otherwise
itemizing all expenses and the name of the vessel and the date of departure. The
commercial invoice should be signed by the exporter or an authorized representative
and certified by the appropriate chamber of commerce.
Certificate of origin:
The original and one copy of the certificate of origin. The latter should indicate the
name and address of the manufacturer or the producer of goods and the name of the
vessel are required for shipment to Qatar. Shippers also must include a notarized
statement certifying the document is true and correct. Exporters should contact their
importers to ascertain the number of copies of this document that are required. The
appropriate chamber of commerce must certify this certificate of origin, which must
also be legalized by a consular service.
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Bill of lading:
There are no regulations specifying the form or number of bills of lading required for
shipments. Bills of lading should show the name of the shipper, the name and
address of the consignee, port of destination, description of the goods, the listing of
freight and other charges, the number of the bills of lading in the full set, the date and
signature of the carrier’s official acknowledging receipt on board of the goods for
shipment. The information should correspond with that shown on the invoices and
the packages. Expenses are generally paid in advance. The airway bill replaces the
bill of lading on air cargo shipment.
Pro forma invoice:
If required, a pro forma invoice stamped and signed by the supplying company or the
exporter must be submitted. The delivery period and validity of the quotations must
be indicated. The serial numbers of the goods mentioned in the invoice must
conform to the numbering system of the Qatari government order sheet.
Exports regulations:
Exports documentary requirements are as follows:
Insurance certificate:
The insurance companies supply the insurance certificate. When the exporter carries
out the shipment, the insurance certificate must state that the insurance company is
not included on the so-called black list. This insurance must be certified by the
appropriate chamber of commerce and presented to the consular section of the
embassy for legalization. Qatari offices require the original and one copy, then the
original will be returned to the shipper.
Steamship company certificate:
The Steamship Company supplies the steamship certificate. It must state that the
ship is not an Israeli vessel and will not call at any Israeli port. The appropriate
chamber of commerce must certify this certificate, which must be presented to the
embassy for legalization. Qatari offices require the original and one copy, then the
original will be returned to the shipper
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.
Health certificate:
Shipments of frozen foods must be covered by an inspection certificate in duplicate
issued by the health authorities of the country of the origin. Imports of plants and
plant materials must be coupled with an official health certificate stating that they are
free from diseases. The legalization of the certificate is compulsory, the original is
returned to the shipper.
Phytosnitary certificate:
Two phytosanitary certificates are required for the shipments of flour, rice, wheat
seeds, dairy products and other agricultural seeds. The legalization of the
phytosanitary certificate is compulsory and the original will be returned to the
shipper.
Other formalities and documents:
The legalization of the certificate of origin costs $ 42. As concerns values exceeding
$274,725, the legalization is 0.4% of the merchandise value while the legalization of
the commercial contract costs $28.
Labeling:
Labeling in Arabic and English is recommended for products entering Qatar. Food
containers must show the country of origin, the name and address of the exporter,
the name and kind of commodity, the net weight of contents, date of packing (day,
month and year), and the name and address of the consignee.
Marking:
All identifying marks including the consignee’s marks and port’s marks must be
clearly inscribed on the packages to facilitate arrival of the shipment. Packages
should be marked legibly.
Packing:
Goods should be packed securely to withstand rough handling and pilferage.
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CUSTOMS TAXATION:
Applicable Duties and Taxes: Customs Duties:
The government maintains lists of goods subject to higher taxes to protect local
industries and of goods exempted from duties. Steel imports are dutiable at 20
percent, those of alcohol and tobacco vary between 30 and 50%. Fifteen products
are exempted from customs duties: live animals, poultry and birds, fresh fruit and
vegetables, trees and roots, sowing seeds, food for cattle, natural fertilizers, Portland
cement, raw sand, stones and clay, basic food products (rice, wheat, sugar, milk,
flour, oil), printed matters, school books, propaganda and advertising articles, un
worked gold and silver, natural pearls not originating in the Persian Gulf.
Ad valorem duties:
Qatar applies an ad valorem of about 4% on most imported products.
Preferential duties:
Qatar is member of the Arab League Trade and Payments Agreement, which apply
preferential tariffs among Member States. Preferential tariffs are also applied
between Qatar and the GCC countries and the Commonwealth.
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TRADE BARRIERS IN INDIA
Trade Barriers
Any restriction imposed on the free flow
of trade is a trade barrier. Trade barriers
can either be tariff barriers (the levy of
ordinary negotiated customs duties in
accordance with Article II of the GATT) or
non-tariff barriers, which are any trade
barriers other than tariff barriers.
Import Licensing:
One of the most common non-tariff barriers is the prohibition or restrictions on
imports maintained through import licensing requirements. Though India has
eliminated its import licensing requirements for most consumer goods, certain
products face licensing related trade barriers. For example, the Indian government
requires a special import license for motorcycles and vehicles that is very restrictive.
Import licenses for motorcycles are provided to only foreign nationals permanently
residing in India, working in India for foreign firms that hold greater than 30 percent
equity or to foreign nations working at embassies and foreign missions. Some
domestic importers are allowed to import vehicles without a license provided the
imports are counterbalanced by exports attributable to the same importer.
Standards, testing, labeling & certification:
The Indian government has identified 109 commodities that must be certified by its
National Standards body, the Bureau of Indian Standards (BIS). The idea behind
these certifications is to ensure the quality of goods seeking access into the market,
but many countries use them as protectionist measures. For more on how this
relates to labeling requirements, please see the section on Labeling and Marking
Requirements in this chapter.
Anti-dumping and countervailing measures:
Anti-dumping and countervailing measures are permitted by the WTO Agreements in
specified situations to protect the domestic industry from serious injury arising from
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dumped or subsidized imports. India imposes these from time-to-time to protect
domestic manufacturers from dumping. India's implementation of its antidumping
policy has, in some cases, raised concerns regarding transparency and due process.
In recent years, India seems to have aggressively increased its application of the
antidumping law. In the first half of the calendar year 2006 India topped the list of
countries initiating new anti-dumping investigations with 20 new initiations.
Export subsidies and domestic support:
Several export subsidies and other domestic support is provided to several industries
to make them competitive internationally. Export earnings are exempt from taxes and
exporters are not subject to local manufacturing tax. While export subsidies tend to
displace exports from other countries into third country markets, the domestic
support acts as a direct barrier against access to the domestic market.
Procurement:
The Indian government allows a price preference for local suppliers in government
contracts and generally discriminates against foreign suppliers. In international
purchases and International Competitive Bids (ICB's) domestic companies gets a
price preference in government contract and purchases.
Service barriers:
Services in which there are restrictions include: insurance, banking, securities,
motion pictures, accounting, construction, architecture and engineering, retailing,
legal services, express delivery services and telecommunication.
Other barriers:
Equity restrictions and other trade-related investment measures are in place to give
an unfair advantage to domestic companies. The GOI continues to limit or prohibit
FDI in sensitive sectors such as retail trade and agriculture. Additionally there is an
unpublished policy that favors counter trade. Several Indian companies, both
government-owned and private, conduct a small amount of counter trade.
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NON TARIFF MEASURES OF AMUL
Non Tariff Measures (NTMs) are all measures other than
normal tariffs namely trade related procedures,
regulations, standards, licencing systems and even trade
defense measures such as anti-dumping duties etc which
have the effect of restricting trade between nations.
Some of these measures could be justified under the provisions or the exceptions
provided under the various multilateral agreements governing international trade. On
the other hand, certain non tariff measures which cannot be justified under any of
these legal provisions are normally termed as non tariff barriers (NTBs).
With the lowering of tariffs across the globe, NTMs have come into prominence with
Members using these measures to erect entry barriers for goods and services. It is
therefore, not surprising that the developed countries with relatively lower tariffs are
the more prolific users of NTMs / NTBs especially to keep out developing country
exports.
While domestic subsidies in the EU and US remain at very high levels, Indian dairy
industry enjoys no domestic support or export subsidies. Since the implementation of
the 'Agreement on Agriculture' has not been very effective and the dairy products
account for one of the largest expenditures on export subsidies in EU and US, the
global dairy trade remains distorted. It is clear that the advanced dairying nations
seek to maximize returns to their dairy farmers while insulating them from the global
market.
As compared with those of many developed nations, India's bound rates for dairy
products remain relatively low. This is particularly true of such products as butter oil,
milk powders, butter, cheese and baby foods, all of which are critical for our dairy
industry. As compared with their European and North American counterparts, Indian
milk producers enjoy a much lower level of protection. It is these same countries that
have placed pressure on our Government to provide free access to our markets,
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citing WTO norms on market access while ignoring their own domestic and export
subsidies. Their policy is to serve their own interests; it must be our Government's
policy to do likewise.
Amending policy regulations on Import of milk products
Under the liberalized import regime, the Government has allowed import of food
products in consumer packs also. Often these imported products do not meet the
Indian standards of quality and packaging, which is applicable to the domestic
manufactures. There is a tendency that developed countries dump products of
inferior quality to India. It is therefore necessary that the Government enforce the
regulation on imports that are violating the laws of the land to protect the interest of
the consumers. Additionally, due considerations on sanitary and phyto-sanitary
measures should be given while approving import of milk and milk products.
Increasing the import duty applicable to milk powder and butter oil to prevent
subsidized import
Currently, the world trade is highly distorted. Most of the advanced dairying countries
subsidies whole or a major portion of their domestic milk production. They also
impose several restrictions to stop import of dairy products. Many of these countries
offer high support price to stimulate milk production. Through various policies and
facilities they frequently subsidies exports.
However, in India, the milk producers do not get any such support. They only want
their government to protect them from the distorted world trade of subsidized
commodities to flood their market. Each year, the Director General of Foreign Trade
(DGFT) issues notification for Tariff Rate Quota (TRQ) for import of Milk Powder
including Skimmed and Whole Milk powder, Milk food for babies etc. at a
concessional duty of 15 per cent. It is felt that this concessional duty of 15 per cent to
import milk powders should be raised to 60 per cent to protect the milk producers
from unfair world competition. Similarly, Amul would like urge our Government to
increase import duty on butter oil to 75 per cent with immediate effect to protect the
dairy farmers.
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INDIA-QATAR BILATERAL ECONOMIC RELATIONS
India enjoys close and friendly relations
with Qatar based on historical
association, traditional friendship and
shared interests. India highly values and
attaches great importance to its relations
with Qatar. It sees great potential for
enhancing and broadening these
relations, particularly in the economic field.
India has historical and traditional links with Qatar, which precede the independence
of both countries. Today, India has a rich, close and multi-dimensional relationship
with Qatar. Qatar, like other countries in the Gulf, enjoys a prominent position in
India’s foreign policy perspectives on several counts.
Firstly, it is home to a large Indian expatriate population, which constantly nurtures
and renews the ties of friendship and understanding between the two countries.
Secondly, India and Qatar enjoy close and friendly relations at the political level and
share common views and perceptions on matters of bilateral, regional and
international interest.
Thirdly, from the economic standpoint, there is a growing synergy between India and
Qatar in the hydrocarbon and other sectors. Indeed, the two countries are natural
economic partners, with their strengths and potentialities complementing each other.
Qatar has made significant progress in the development of its natural gas reserves in
the North Dome Field. India is a large and expanding market for export of LNG from
Qatar and the geographical proximity of the two countries virtually ensures mutually
beneficial interaction in a long-term perspective.
Both sides wish to give a strong economic impetus to their bilateral relations. India is
the tenth biggest source for Qatar’s imports and the third biggest market for Qatar’s
exports. The total trade volume between India and Qatar was QR 775.39 million
($213 million) during 1996, as per the latest statistics released by the Qatari Central
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Statistics Organization. India’s exports to Qatar were QR 219 million ($60 million)
while its imports from Qatar were of the order of QR 556 million ($153 million) during
1996.
India’s export basket is fairly diversified and includes foodstuffs, spices, tea, coffee,
textiles, ready-made garments, jewellery, light engineering goods, basic chemicals,
steel pipes, and consumer electronics. This acceptance of a wide variety of Indian
goods in the competitive and highly quality conscious market of Qatar gives us
confidence that there is considerable room for expanding our exports further.
India’s direct exports to Qatar have increased steadily, from US$ 39 million in 1992
to US$ 54 million in 1993 and US$ 63 million in 1994 and US$65.1 million during
1995. The exports stood at US$ 60 million in 1996. In addition, there is substantial
entrepot trade to Qatar via Dubai. Taking this into account, it is estimated that India’s
exports to Qatar would be upwards of US$ 100 million annually. A number of
consumer goods from India are available and popular in Qatar and there are good
prospects for diversification and expansion given the low level of customs duties in
Qatar.
India’s imports from Qatar consist of largely of urea, ammonia, sulphur, ethylene and
polyethylene. India has substantial dealings with the Qatar Fertiliser Company
(QAFCO) and the Qatar Petrochemical Company (QAPCO). The Government of
India have recently taken a decision to include, in principle, purchase of crude from
Qatar in the annual purchase plan for 1998-99. A trial shipment has recently been
sent to India for testing to determine its suitability for use in Indian refineries.
India’s imports from Qatar have also increased steadily, from US$ 56 million in 1992
to US$ 82 million in 1993, US$140 million in 1994, US$142.36 in 1995 and US$ 152
million in 1996.
DALIA INSTITUTE OF MANAGMENT Page 20
QATAR – Domestic Production v/s Import of major Dairy Products
Segment
GCC countries largely rely on imports to meet most of their food requirement. These
nations imported as much as 37.2 million metric tonnes of food in 2007, more than
three times the food produced locally.
Milk & Milk products segment
The dairy segment comprises milk and its derivates:
cheese, cream, spreadable fats and yogurt. Saudi
Arabia is the largest producer of milk and dairy
products in the region, followed by the UAE and
Oman. Saudi Arabia produces nearly 30% of milk &
milk products locally. Separately, the UAE produces
just 17% of its domestic demand. The other four countries produce less than 10% of
their overall food consumption. Production of milk & milk products in the GCC region
has, however, not increased in tandem with the growth in demand. Consequently,
almost 80% of total consumption is met through imports from the rest of the world.
Trade liberalization
Following the liberalization of trade (i.e., removal of barriers to foreign investment in
food distribution – retail/food outlets), the availability of processed food products has
improved; also, they have become more affordable. Transnational food corporations
such as AMUL, McDonald’s, KFC, Tyson and Kraft are contributing to growth in the
GCC processed food products market. A natural outcome of this is the increasing
westernization of food habits in the region.
DALIA INSTITUTE OF MANAGMENT Page 21
ROLE OF INDIA IN EXPORTING DAIRY PRODUCTS
India's exports have an insignificant share in the global
dairy trade(less than 1%) despite India being the
largest milk producer. India has two distinct
competitive advantages, which can be leveraged to
enhance exports:
1. Low Farm gate prices:
Amongst the important milk producing countries, Argentina, New Zealand and
Australia have slightly lower farm gate prices than India, but these account for only
10% of the global milk production.
2. Proximity to milk deficit markets :
India has a locational advantage to serve milk deficit areas in the neighboring
countries in south East Asia and Southern Asia. In addition, demand for milk
products in these markets are expected to be strong.
However, India has not able to capitalize these advantages and also not able to
compete in global markets mainly due to:
Low quality and hygiene standards
Lack of experience and information
Significant growth in domestic consumption leading to limited surplus for
exports.
As the market opens up, consumption trends associated with the large importing
markets will increasingly influence the world trade. As the standards of living in the
importing countries rise, the exporting countries will increasingly have to
concentrate on the products demanded by the importing countries. Whole milk
powder and cheese along with butter and skimmed milk powder are likely to become
largely traded products. This will present a vast potential for the export of dairy
products by India because the cost of milk production in India is very low as
DALIA INSTITUTE OF MANAGMENT Page 22
compared to other countries. Most of the dairy plants in the Government,
Cooperatives and Private Sector produce almost similar dairy products like varieties
of milk, butter, ghee, skimmed milk powder and whole milk powder. With some R& D
and modern technology, these plants can be used to produce value added products
that are being demanded by the importing countries. Hence there exists an
immense scope for the broadening the products range to include those products
which are likely to have a considerable demand in the future.
Another factor favoring India is the diminishing importance of Europe as a key
exporter of dairy products with the reduction in subsidies under the WTO regime.
This is likely to give India, which offers no subsidies and has competitive milk
producers, a chance to export its dairy products.
As the world is getting integrated into one market, quality certification is
becoming essential However, there are very few plants in the country, which have
successfully obtained the ISO and the HACCP certification. This non compliance
with international quality and food safety norms such as International Product
Standards, HACCP, and GMP/GHP is a major bottleneck, which becomes a barrier
to India's competitiveness in exports.
While export markets provide huge potential for growth there is an equally lucrative
opportunity in the growing domestic markets. Here, also with entry of global players
in food processing and changes in the retailing format, the safety norms would be
pushed up to international standards and its compliance would become the key for
ensuring not only the survival but also the foundation for competitiveness. The
demand of processed milk, both in the form of liquid milk and dairy products, will also
depend to a great extent on delivering value to the customers and brand building.
Further, to remain competitive in the world market, the dairy industry constantly
needs to reinvent itself and to develop capacities for continuous improvement by
using the cutting edge world class management techniques for strengthening core
operational strengths to stay competitive, efficient and profitable.
DALIA INSTITUTE OF MANAGMENT Page 23
EXPORT POTENTIAL OF DAIRY PRODUCTS
India has the potential to become one of the leading
players in milk and milk product exports. The trade in milk
and dairy sector has become increasingly globalize. This
has been Possible because of advanced technology,
changing consumer preferences and year round supply.
As a result, large volumes of dairy products move from
one continent to another, reducing seasonality of produce markets. Also multiple,
regional and bilateral trade agreements and reduction of tariff barriers as a result of
WTO negotiations, have further boosted the trade and access to markets, thus
providing consumers with an expanding array of dairy products.
Location advantage:
India is located amidst major milk deficit countries in Asia and Africa. Major importers
of milk and milk products are Bangladesh, China, Hong Kong, Singapore, Thailand,
Malaysia, Philippines, Japan, UAE, Oman and other gulf countries, all located close
to India.
Low Cost of Production:
Milk production is scale insensitive and labor intensive. Due to low labor cost, cost of
production of milk is significantly lower in India. Concerns in export competitiveness.
Quality:
Significant investment has to be made in milk procurement, equipments, chilling and
refrigeration facilities. Also, training has to be imparted to improve the quality to bring
it up to international standards.
Productivity:
To have an exportable surplus in the long-term and also to maintain cost
competitiveness, it is imperative to improve productivity of Indian cattle.
DALIA INSTITUTE OF MANAGMENT Page 24
There is a vast market for the export of traditional milk products such as ghee,
paneer , shrikhand , rasgolas and other ethnic sweets to the large number of Indians
scattered all over the world
DALIA INSTITUTE OF MANAGMENT Page 25
STEPS INTIATED BY APEDA
Standards have been laid down for export of dairy products APEDA (Agricultural
and Processed Food Products, Export Development Authority) is offering
subsidies for implementation of HACCP and ISO 9000, installation and up gradation
of laboratories and market promotion through sending of samples, printing of
catalogue brochures and brand publicity through advertisement etc. under it’s plan
scheme. Export market development will depend on ensuring the quality. This will
require that exporters ensure quality from the milk animals to the port and beyond.
To build the quality, mechanized dairy fanning requires encouragement with export
oriented processing facilities. Manufacturing units linked by contract with large scale
producers, can ensure of quality raw material necessary to enter and maintain the
position in the international market. It is the cow milk which is recognized in the
international market. Since India is producing more of buffalo’s milk, there is a need
for generic promotion of buffalo’s milk. Many countries in the world do not import milk
products from India since India is reporting many livestock diseases particularly
FMD. Efforts are, therefore, needed to control and eradicate FMD at least in major
milk producing States. Creation of chilling facilities at block level/ village level and
transportation of liquid milk to processing units in reefer units. Moreover The Amul
union has achieved the prestigious ISO 9001-2000and HACCP Certificate and effects are
got to obtain ISO 14000.
Export of certain milk products like milk powder, ghee and butter was canalised uptil
1993. With the objective of promoting exports of milk products, the Govt. have
dechannelised the export of these milk products with effect from mid 1993.
According to the EXIM Policy for 1997-2002, the policy for export of these milk
products is as under: Powder milk (skimmed or full Cream) whole and infant milk
food, pure milk Ghee and Butter, except when exported as branded products in
consumer packs, not exceeding 5kgs in weight, will be exempted from the following
conditions:
Quantitative ceiling as may be notified by the DGFT from time to time.
Registration-cum-allocation certificate issued by agricultural and processed
Food Products Export Development Authority (APEDA).
DALIA INSTITUTE OF MANAGMENT Page 26
CERTIFICATION SCHEME FOR INDIAN DAIRY PRODUCTS
The Indian dairy sector is poised for rapid expansion as a result of the application of
modern process technologies. This coupled with the rising demand for packaged
fresh dairy products is widening the base of the modern dairy sector. Yet India’s
contribution to world food trade is relatively insignificant despite the country being the
third largest producer of food products in the world.
A major factor for such low exports has been the quality and safety considerations of
the consumers who have been increasingly showing their preferences for high
quality products.
In the WTO regime, India's trading partners are also installing regulatory import
controls. It is becoming increasingly necessary to take into account critical factors,
related to quality and safety of products throughout the food chain right from the
stage of production to the final consumption stage. The Export Inspection Council of
India (EIC) is the official certification body set up by the Government in 1964. It
enjoys a statutory status.
Dairy products are governed by the Compulsory Quality Control, Inspection
and Monitoring Notification which sets the standards for dairy exports including
sanitary and hygiene. Recognition is also given to the Codex Alimentations
Commission (CAS) standards, the national standards of the importing countries or
the contractual specifications if any, provided these are not below the national
standards as specified in the notification.
The notification also specifies the type of quality controls and inspection as per
the export of milk products (Quality control, Inspection and Monitoring) Rules,
2000, applicable to milk products prior to exports. The processing plants are
primarily responsible for meeting the health requirements of the importing
country. To fulfill this responsibility the plants are required to plan and implement
process control, develop their own systems of checks, and keep necessary records.
The certification system adopted by the EIC involves approval of milk processing
DALIA INSTITUTE OF MANAGMENT Page 27
units on compliance, followed by periodic surveillance by the five Export Inspection
Agencies (EIA's) at Delhi, Kolkata, Kochi, Chennai and Mumbai, supported with a
network of 42 sub-offices and laboratories.
DALIA INSTITUTE OF MANAGMENT Page 28
STRATEGY FOR PROMOTING DAIRY EXPORTS FROM INDIA
India needs to address effectively the above
challenges affecting export of dairy products. The
export promotion strategy would include developing
and implementing effective mechanism for control of
livestock diseases, creating awareness in the
international markets about nutritional aspects of
buffalo milk vis-à-vis cow milk, consistent and effective
efforts to improve the milk yield.
Moreover, as import tariffs have considerably declined and quota restrictions fast
disappearing in international markets, there is a strong fear that high income
countries are increasing making use of quality standards as a formidable barrier to
dairy products from India and other developing countries. The research institutions
and scientists in India need to keep a close vigil on such mandatory quality
specifications in international markets so as to overcome the newly emerging
international marketing barriers. Thus, the key to successfully overcome the
emerging challenges in international markets lies in the hands of bright scientists and
technologists of India.
Presently, Export Inspection Agency is the legislation enforcing authorities with
responsibilities to regulate and Maintain the quality of international standard (Codex)
do not have adequate testing Facilities. Apparently, there is an urgent need for
establishing a network of quality control labs at the regional and national level. In
order to compete globally for the export of dairy products, it would be strategically
advantageous to establish synergistic alliances among the exporting/importing
countries (on the lines of Australia and New Zealand, who fiercely compete with
each other but enter the world market as strategic partners).
Suitable economic and policy considerations relating to infrastructure development
become necessary for promoting export of dairy products by the industry. Export
responsive infrastructure development policies, and increase in investment by public
DALIA INSTITUTE OF MANAGMENT Page 29
and private sector as partners are required. For this purpose, Export Promotion
Council needs to be established. Stable and long-term infrastructure investment
policies by way of providing 10 years tax holiday are necessary to promote export of
dairy products. In order to facilitate export of milk products by the dairy industry,
single window clearance system for export to be developed on a priority basis.
DALIA INSTITUTE OF MANAGMENT Page 30
The Gujarat Cooperative milk Marketing Federation Ltd, Anand
(GCMMF)
A cooperative was set up in the village of Kaira in Gujarat to collect process and
market milk. Subsequently, the Kaira Cooperative Union established a marketing
agency named Gujarat Cooperative Milk Marketing Federation, which follows a
three‐layer structure that collects, processes and markets dairy products at village,
district and state levels. The district units also provide technical support to the milk
producers and a range of services such as feed, veterinary care, artificial
insemination, education and training. These milk cooperatives of Gujarat today own
the GCMMF, the largest food products business in India. GCMMF is also the largest
exporter of dairy products from India and owns the brand Amul. The foundation of
Indian dairy industry’s cooperative movement was thus set and federal and
egalitarian structure of these cooperatives ensured social and economic equity.
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has
nearly 50 sales offices spread all over the country, more than 5,000 wholesale
dealers and more than 7,00,000 retailers.
AMUL is also the largest exporter of dairy products in the country. AMUL is available
today in over 40 countries of the world. AMUL is exporting a wide variety of products
which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT
Milk, Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA,
West Indies, and countries in Africa, the Gulf Region, and SAARC neighbors’,
Singapore, The Philippines, Thailand, Japan and China.
DALIA INSTITUTE OF MANAGMENT Page 31
ROLE OF EXPORTS OF GCMMF
The Federation's export turnover registered a 93 percent increase, over the previous
year. Apart from our regular exports of branded, consumer-packed dairy products to
the US, Persian Gulf and Far East markets, Amul exported large quantities of skim
and full cream milk powder. Nutramul, Amulya, Mithaimate and Amul paneer were
launched in the Gulf countries. New markets like Madagascar, Russia and Saudi
Arabia are being developed, building a strong base for the future.
Federation has won the APEDA award for excellence in Exports. Amul dairy plants
have now received ISO 9000 and HACCP certification, helping to obtain the required
Export Inspection Agency plant certification for dairy products.
It is ironic that although successive Governments have been quick to embrace
'Liberalization' - clearing the field for business houses and multinationals - they have
still not amended the cooperative law - a law that was and is an artifact of the
colonial regime. Shackled by an archaic legal framework, cooperatives have pleaded
repeatedly with the Central and State Governments to initiate reforms. These
reforms are essential to establishing a level-playing field, enabling cooperatives to
compete effectively in the market.
It is a well-known fact that even six years after formalization of the 'Agreement on
Agriculture', under the aegis of the WTO, distortions in global dairy products trade
still have not been removed. The very objective of the WTO - 'to promote fair and
market-oriented International Trade' - has been defeated by the massive export
subsidies and domestic production incentives given by developed countries to their
milk producers. The natural consequence of the combination of high export subsidies
and stagnant demand in their own market, is dumping of excess production, in the
markets of developing countries.
In the recently-announced EXIM policy, Government has lifted quantitative
restrictions on import of all dairy products. This will only facilitate dumping of heavily
subsidized dairy products into our markets, leading to depression of milk-product
DALIA INSTITUTE OF MANAGMENT Page 32
prices within India. It has been found that many of these packed and branded
imported products fall short of Indian quality and packaging standards and legal
requirements. It have brought to our Government's notice the risks to indian dairy
industry, posed by unrestricted subsidized imports of sub-standard dairy products.
With the removal of quantitative restrictions, only swift imposition of high rates of
tariffs and erection of non-tariff barriers can protect the futures of millions of marginal
farmers, for whom income from dairy products has meant the road to a better life.
Specific product categories such as milk powders and butter-oil can be classified as
critical for the economy of its nation. Indian Government should explore possibility of
restricting the import of these categories, using WTO-compatible mechanisms. Non-
compliance with WTO export subsidy and domestic support norms by the advanced
dairying nations may be cited as justification.
DALIA INSTITUTE OF MANAGMENT Page 33
NEW AMUL PRODUCTS INTRODUCED IN QATAR
Products available in Qatar
Butter
Amul Lite
Amul Butter
Delicious Table Margarine
Amul cooking Butter
Bread Spreads
Amul Butter
Utterly Butterly
Delicious
Amul Lite
Low fat, low
Cholesterol
Bread Spread
Delicious Table
Margarine
The Delicious
way to eat
healthy
Cooking
Butter
Paneer
Amul Malai Paneer
Amul Pasteurized Processed Cheese
Amul Cheese Spreads
Amul Emmental Cheese
Amul Pizza Mozzarella Cheese
Amul Malai Paneer
Ready to cook paneer to make your
favourite recipes!
DALIA INSTITUTE OF MANAGMENT Page 34
Shrikhand
Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
Amul Shrikhand
A delicious treat, anytime.
Ice-Cream
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh Strawberry,
Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Amul Ice Creams
Premium Ice Cream made in various
varieties and flavours with dry fruits
and nuts.
Cheese Range :
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozzarella) Cheese
Amul Shredded Pizza Cheese
Amul Emmental Cheese
Amul Gouda Cheese
Amul Malai Paneer (cottage cheese)
DALIA INSTITUTE OF MANAGMENT Page 35
Cheese (Qatar)
Amul Pasteurised
Processed Cheese
100% Vegetarian Cheese
made from microbial
rennet
Amul Cheese Spreads
Tasty Cheese Spreads in 3
great flavours..
Amul Emmental Cheese
The Great Swiss Cheese
from Amul, has a sweet-
dry flavour and hazelnut
aroma
Amul Pizza Mozzarella
Cheese
Pizza cheese...makes great
tasting pizzas!
Gouda Cheese
Milk Range :
Amul Shakti 3% fat Milk
Amul Taaza 1.5% fat Milk
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Fresh Milk (Qatar)
DALIA INSTITUTE OF MANAGMENT Page 36
Amul Fresh Milk
This is the most
hygienic milk
available in the
market. Pasteurised in
state-of-the-art
processing plants and
pouch-packed for
convenience.
Amul Gold Milk
Amul Taaza Double
Toned Milk
Amul Lite Slim and
Trim Milk
Amul Shakti Toned
Milk
Amul Shakti Toned
Milk
Chocolate & Confectionery :
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Amul Chocolates
The perfect gift for someone you love.
These products are being exported to the gulf since last three decades.
The following Amul Products are available in the gulf markets:-
DALIA INSTITUTE OF MANAGMENT Page 37
Amul/Sagar Pure ghee
Amul cheese Tin & slices
Amul Shrikhand
Amul butter
Amul gold milk & Taaza full cream milk
Amul lite slim & trim milk
Amul fresh cream
Amul Shakti toned milk
Amul cool chocolate milk
Amul flavored tetra pack
Amul mithaee gulab jamuns
DALIA INSTITUTE OF MANAGMENT Page 38
EXPORT PROSPECTS OF AMUL
To tap export potential of dairying sector, India
needs to formulate a suitable export strategy by
initiating series of steps, viz.
i. Adoption of international standards for production and processing of milk;
ii. Increasing production through application of advanced technologies in the
processing of dairy products;
iii. Better and improved packaging,
iv. Improving cold storage and transportation capacity,
v. Developing an efficient export marketing network to optimize the production
and exports; and
vi. Setting up of more quality control laboratories for testing the quality of dairy
products.
vii. With the implementation of the above steps, the exports of dairy products are
set to make a breakthrough in the coming years.
EXPORT POTENTIAL OF AMUL
Efforts to exploit export potential are already on. Amul is exporting to Bangladesh,
Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty,
opportunities will increase tremendously for the export of agri-products in general
and dairy products in particular. There is a strong basis of cost efficiency, which
GCMMF can leverage in the world market. The market for the traditional as wells as
processed dairy products is expanding both at the domestic and international front.
In IT support , Software is now available for project formulation for dairy enterprise.
It has also computerized its production processes. Mother Dairy was the first fully
computerized dairy in India. In its Anand plant all products are processed
computerized, which does not have any hand touch during any stage of process.
Despite unfavorable conditions in international dairy market, Amul export business
reached Rs.133 crores against Rs.125 crore last year. Amul have further
DALIA INSTITUTE OF MANAGMENT Page 39
consolidated its growth in consumer products including Paneer, Butter, Cheese, UHT
Milk etc. This is extremely encouraging and indicates the high trust that our
customers place in Amul Brand. Amul have not been able to export Milk Powder in
bulk packing in larger quantity due to fall of world market prices by nearly 50% as
compared to previous year.
Amul’s Ambitious Export Plan
The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets the
“Amul” brand of milk and milk-based products is targeting an export turnover of Rs
150 crore in the fiscal year 2006. It expects milk products sale to rise in the
overseas markets. During the year 2010-11, our exports has achieved turnover of
Rs. 98 Cores. This had been achieved in spite of ban by Govt. of India on exports of
milk powder since February 2011. Amul have been able to achieve continuous
growth in export of consumer products by leveraging on strong brand equity of Amul
in global market.
DALIA INSTITUTE OF MANAGMENT Page 40
MAJOR CHALLENGES OF AMUL IN PROMOTING EXPORTS OF DAIRY
PRODUCTS FROM INDIA
Dairy exports from India face a number of challenges that may be summarized as
follows:
Prevalence of Livestock Diseases such as Foot and Mouth Disease (FMD)
Importers’ insistence on labeling dairy products as manufactured from cow
milk
Quality issues related to pesticides and antibiotics
Small animal holdings making it difficult to introduce mechanized system of
milking and milk holding
Low milk yield vis-à-vis exotic cattle
Low surplus for exports as domestic consumption is very high
THREATS FACED BY AMUL:
Milk vendors, the un-organized sector
Today milk vendors are occupying the pride of place in the industry.
Organized dissemination of information about the harm that they are doing to
producers and consumers should see a steady decline in their importance.
Infestation
There are increasing incidents of chemical contaminants as well as residual
antibiotics in milk.
Quality
The quality of the milk is found to be poor as compared to the international
standards. One of the reasons for these according to the EU and America is
the method of milching the milk. In these nations the milk is hands by the
farmers owning the cattle do milched with the help of machines, while in India.
Exploitation
DALIA INSTITUTE OF MANAGMENT Page 41
The liberalization of the Dairy Industry is likely to be exploited by the
multinationals. They will be interested manufacturing the milk products, which
yield high profits. It will create milk shortage in the country adversely affecting
the consumers.
Subsidy by Western Nations
There have been incidences wherein the Western nations subsidizing the
dairy products by a few means like transportation. Because of such reasons
the final price of the product goes below the prices prevailing in the Indian
Market. Hence it proves a threat to GCMMF’s and other Indian dairy products.
Creation of Non Tariff Barriers by Developed Nations
The Developed Nations have created Non Tariff Barriers related to Quality of
the milk specifically. They want that the milk be processed with potable Air
and Water. They also want that the milching of cattle be done with the help of
machines. However this type if system is yet to evolve in India. Because of
these reasons they are reducing the market potential of Indian made
products, where GCMMF holds a lions share.
DALIA INSTITUTE OF MANAGMENT Page 42
BIBILIOGRAPHY
www.amul.com/
wikipedia.org/wiki/Amul
amul.com/organisation.html
www.gcmmf.coop
www.apeda.gov.in
www.agriexchange.apeda.gov.in
www.qatarchamber.com
www.qatarembassy.net/ccommerce.asp
www.globaltrade.net/m/c/Qatar.html
DALIA INSTITUTE OF MANAGMENT Page 43
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