Duty on milk powder re-imposed

The Government yesterday re-imposed the Customs duty on imported full cream milk powder except for infant formulae to discourage reliance on foreign products and to boost local dairy industry.

Finance Ministry said previously there was a 30% or Rs. 125 per kilo duty on import price but was removed. With effect from midnight yesterday a duty of 15% or Rs. 92 per kilo whichever is higher has been re-imposed on imports except for infant milk powder. The current price of a kilo of milk powder ranges between Rs. 450 and Rs. 490 per kilo.

The move comes after massive protest on Wednesday after at least two dairy producers had allegedly stopped sourcing supplies from local farmers and opting for foreign procurement.