India may not be able to export dairy products to Russia due to stiff conditions set by the latter, including that interested companies should possess at least 1000 milking animals.
This means that traders and processors of milk derivatives, such as cheese, will not be able to access Russian markets; exports of such products were allowed earlier this year.
"No exports to Russia, for now as the Russian authority has put in stiff conditions. Among others, the interested exporters should have at least 1000 milking animals," said R S Sodhi, managing director of Gujarat Co-operative Milk Marketing Federation Ltd which sells Amul brand milk and its derivatives.
In fact, Amul had already initiated dialogues with a handful of Russian buyers for export of milk derivatives but those were derailed because of impossible conditions.
Russia allowed access to its markets for Indian dairy exporters in January this year after the country's Prime Minister Vladimir Putin visited India and announced firming of trade ties between the two countries.
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Following this, Amul initiated talks with about half a dozen Russian dairy importers. Other exporters had also showed interest in Russian markets.
India is the world leader in milk production.
Most dairy producers in India operate under a co-operative model in which animals are owned by farmers and co-operative factories only process the procured milk. Under the existing Russian framework, therefore, such co-operatives do not fit the bill as they do not directly own the milch animals.
Farmers' co-operatives, however, have approached the government for a favourable revision in Russian framework.
An official from Schreiber Dynamix Dairies Ltd which sales dairy products under "Dynamix" brands, said, "As far as I know, there has been no export of dairy products to Russia."
Source:- business-standard.com
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