export project gcr[1]

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

DALIA INSTITUTE OF MANAGMENT Page III

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.

DALIA INSTITUTE OF MANAGMENT Page IV

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

DALIA INSTITUTE OF MANAGMENT Page V

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

DALIA INSTITUTE OF MANAGMENT Page VI

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

DALIA INSTITUTE OF MANAGMENT Page VII

DALIA INSTITUTE OF MANAGMENT Page 1

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.


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.


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


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.


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.


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.


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.


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.


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.


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


.

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.


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.


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


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.


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,


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.


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


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.


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.


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


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.


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.


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


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).


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


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.


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


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.


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.


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


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.


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!


http://toi.amul.com/bread-butter.html

http://toi.amul.com/bread-lite.html

http://toi.amul.com/bread-delicious.html

http://toi.amul.com/cooking-butter.html

http://toi.amul.com/cooking-paneer.html

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 Gouda Cheese

Amul Malai Paneer (cottage cheese)


http://toi.amul.com/desserts-shrikhand.html

http://www.amulicecream.in/

Cheese (Qatar)

Amul Pasteurised

Processed Cheese

100% Vegetarian Cheese

made from microbial

rennet

Amul Cheese Spreads

Tasty Cheese Spreads in 3

great flavours..


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)


http://toi.amul.com/cheese-cheddar.html

http://toi.amul.com/cheese-spreads.html

http://toi.amul.com/cheese-emmental.html

http://toi.amul.com/cheese-mozzarella.html

http://toi.amul.com/cheese-gouda.html

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:-


http://toi.amul.com/fresh-fmilk.html

http://toi.amul.com/fresh-gold.html

http://toi.amul.com/fresh-tazza.html

http://toi.amul.com/fresh-slim.html

http://toi.amul.com/fresh-shakti.html

http://toi.amul.com/fresh-shakti.html

http://toi.amul.com/desserts-chocolates.html

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


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


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.


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


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.


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


export project gcr[1]

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