India needs to be export competitive to capture overseas market for surplus milk: Niti Aayog member

India has already emerged as the largest milk-producing nation in the world, and if it has to capture overseas markets for its surplus milk, then the country must be export competitive, Niti Aayog member Ramesh Chand has said.

India has already emerged as the largest milk-producing nation in the world, and if it has to capture overseas markets for its surplus milk, then the country must be export competitive, Niti Aayog member Ramesh Chand has said.

Mr. Chand in a working paper further said India's dairy industry has been opposing any free trade agreement that involves liberalisation of trade (import) in dairy products.

"However, if we have to capture overseas markets for disposal of the future surplus of milk in the country then we must be export competitive.

"Being export competitive requires higher competitiveness than competing with imports," he said.

According to Mr. Chand, a country cannot be export competitive if it is unable to compete with imports and this issue is crucial for the future growth of the dairy industry in India.

While noting that the dairy industry must prepare for channelising some domestic production to overseas markets, he suggested that it is better if it is done after processing various products rather than liquid milk alone.

"This will require some change in investment in the dairy industry, including the value chain. India can also tap some high-end markets if it can address milk quality and livestock health," he said.