Low-priced powdered milk for people
Md. Ashraf Hossain | Wednesday, 30 July 2008
ALTHOUGH pediatricians say that there is no alternative to breast-feeding for babies, human babies have to depend on cow's milk in practice as supplementary diets. In addition to that, usually people of all age groups should take some quantity of milk everyday. In Bangladesh there is acute shortage of cow's milk because of shortage of grassing land. Imported powdered milk caters to a big chunk of local demand.
But the high price of powdered milk in the international market, the high customs duty imposed on it and VAT and the supplementary duties on the imported milk have made it a food for the rich. The majority of the population in Bangladesh are poor. They cannot afford milk owing to its very high price. The price is so high that even the middle class people cannot take milk regularly.
A few big commodity traders in Bangladesh import powdered milk and sell it in the local market. Their 'syndicated' operation is also one of the reasons for such high price of milk.
A Dhaka-based daily reported recently that in the international market within two months' time the price of each ton of powdered milk has come down from US$4,500.00 to US$2,500.00. China has entered the international milk market with its huge production of powdered milk. A section of rich people of China provided a large number of cows to the Mongolian farmers on sharing basis, as there are vast expanses of grazing land there. They are producing powdered milk in China to sell within China as well as in the international market. This has caused the price of milk to come down.
The importers in Bangladesh have been enjoying the lower price but are not shifting the benefit to the consumers. Government intervention is necessary. The Trading Corporation of Bangladesh (TCB), a government enterprise, may stand on the side of people against syndicated traders. It can import powdered milk and sell it to the general consumers through dealers as well as by itself. It can import full cream and half cream powdered milk in 500gm, one kg and two kg air-tight poly packs form China to provide fair price benefit to the consumers in Bangladesh. On the other hand, the Ministry of Finance can withdraw the supplementary duty, which was imposed on the plea that it would enhance production of milk in the country.
In practice, the idea about raising domestic dairy output has been proved wrong, if we look at the performance of the local farms in the last two decades. Withdrawal of supplementary duty will create an environment whereby all people will be able to take milk occasionally, if not every day. The holy month of Ramadan is coming. So, the government should engage TCB immediately to import powdered milk and ask NBR to withdraw supplementary duty on the import of milk powder. Then, the people who would observe fasting will be able to enjoy low-priced milk in their seheri, iftar and during the Eid festival.
But the high price of powdered milk in the international market, the high customs duty imposed on it and VAT and the supplementary duties on the imported milk have made it a food for the rich. The majority of the population in Bangladesh are poor. They cannot afford milk owing to its very high price. The price is so high that even the middle class people cannot take milk regularly.
A few big commodity traders in Bangladesh import powdered milk and sell it in the local market. Their 'syndicated' operation is also one of the reasons for such high price of milk.
A Dhaka-based daily reported recently that in the international market within two months' time the price of each ton of powdered milk has come down from US$4,500.00 to US$2,500.00. China has entered the international milk market with its huge production of powdered milk. A section of rich people of China provided a large number of cows to the Mongolian farmers on sharing basis, as there are vast expanses of grazing land there. They are producing powdered milk in China to sell within China as well as in the international market. This has caused the price of milk to come down.
The importers in Bangladesh have been enjoying the lower price but are not shifting the benefit to the consumers. Government intervention is necessary. The Trading Corporation of Bangladesh (TCB), a government enterprise, may stand on the side of people against syndicated traders. It can import powdered milk and sell it to the general consumers through dealers as well as by itself. It can import full cream and half cream powdered milk in 500gm, one kg and two kg air-tight poly packs form China to provide fair price benefit to the consumers in Bangladesh. On the other hand, the Ministry of Finance can withdraw the supplementary duty, which was imposed on the plea that it would enhance production of milk in the country.
In practice, the idea about raising domestic dairy output has been proved wrong, if we look at the performance of the local farms in the last two decades. Withdrawal of supplementary duty will create an environment whereby all people will be able to take milk occasionally, if not every day. The holy month of Ramadan is coming. So, the government should engage TCB immediately to import powdered milk and ask NBR to withdraw supplementary duty on the import of milk powder. Then, the people who would observe fasting will be able to enjoy low-priced milk in their seheri, iftar and during the Eid festival.