The country's dairy farmers demanded on Monday imposition of 50 per cent duty on import of powdered milk from the next fiscal year to help protect the local industry.
They also sought imposition of anti-dumping duty on imported powdered milk to protect the industry from unfair competition.
The demand came at a press conference organised jointly by Bangladesh Dairy Farmers Association (BDFA) and National Dairy Development Forum (NDDF) at the National Press Club in the city.
BDFA president Md Emran Hossain said the country's milk production increased to 9.4 million tonnes in last 8 years from 2.9 million tonnes.
He said the demand for milk is 15 million tonnes. "We have a shortage of 5.6 million tonnes which we could cover within three years."
He said highly subsidised foreign powdered milk is making the competition uneven in the country. "It will ruin the local industry."
The BDFA president also demanded the government consider dairy as an agricultural sector.
NDDF president Umme Kulsum Smrity said the number of dairy farms increased to 1.2 million from 0.2 million few years back.
The government has undertaken several projects to boost milk and meat production, said Ms Smrity, also a former lawmaker.
"Fifty per cent duty should be imposed on powdered milk (excluding lactose-free and vegetable fat-free baby food) to save the local industry," she said.
Milk Vita additional general manager Md Mustafizur Rahman said they are now supplying 0.15 million litres of packet milk every day.
He said Milk Vita is also producing powdered milk.
"But many of our products remain unsold as low-cost and low-grade imported powdered milk is flooding the market."
The retail price of Milk Vita's powdered milk is Tk 450 a kg when customers can buy imported milk at Tk 250-Tk 300 a kg, he added.
He said Milk Vita's powdered milk contains milk fat while imported milk has vegetable fat (like palm oil fat) which might be harmful to both adults and children.
BDFA Secretary Shah Imran said dairy farmers in the countries like Australia, Denmark and New Zealand get 65-70 per cent incentives against their production.
"These highly incentivised produce has been creating uneven and unhealthy competition with our local milk as we get no incentives."
He also said the government should consider imposing an anti-dumping duty on such products.
The Bangladesh Tariff Commission (BTC) should conduct a study and arrange public hearing on the matter, he added.
BDFA and NDDF, however, placed a ten-point demand at the press conference.
Apart from higher tax imposition on milk import, the associations also demanded 20-year tax holiday facility for the local dairy sector.
It also demanded the government ensure fair prices of their milk.
The platforms demanded removal of any import duty on machinery used in the dairy farms and animal feed.
Credit facility at single digit interest and 20 per cent incentives against their production were also sought at the press conference.
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