 "Govt should allow us to commence exports to Russia: Devendra Shah")
Russia opened its dairy market to Indian exporters in January this year. But even after over seven months, India has not been able to export dairy products to the European country. Russia has so far approved two plants in India - Parag Milk Foods and Dynamix. But Russian and Indian officials are still engaged in talks about a draft protocol. Devendra Shah, Chairman, Parag Milk Foods, in an interview with Dilip Kumar Jha, says the government should allow the two players to export products and bring in more players in the next phase. Edited excerpts:
What is the status of exports to Russia?
The government has set up an advisory committee comprising of leading dairy players to deliberate on the Russia export scenario. But many of these players were not approved by the Russian authorities. It is ambiguous as to why the government is allowing other players to determine if the protocol needs to be signed. We have made it clear that those losing out should not decide our chances. If Russia is suggesting anything on the milk handling process, we should take it positively.
But once a protocol is signed, re-negotiations would be difficut...
The government should allow us to export dairy products while it continues to engage with the Russian authorities to get more suppliers on board. If we keep working on the draft protocol, we will lose out on an important opportunity.
Once quality is assured by potential exporters, is "the 1000 cattle condition" relevant?
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It's not about the 1,000 cattle condition. It is all about the handling of milk. Basically Russia was not satisfied with the local procurement and milk handling practices in India. They have insisted on the better handling of the milk and milk products. We should take these suggestions positively as it will help us better our practices. It will also help create awareness about livestock care and better productivity.
Does this condition apply only for Indian dairy exporters?
Whether it is India or any other country, if it is for country’s and sector’s benefit then we should take it positively.
How big is the Russian dairy market in monetary terms and how much of it can Indian exporters tap?
The Russian cheese market in volume is 2.30 lakh Metric ton per annum. Parag milk foods can export 300-500 MT per month.
Why has Russia turned to India for dairy imports?
The Russian market was never open to India. The opportunity has come because they have banned EU and US products. After this ban, Russia started explorings other markets.