In an attempt to discourage export of milk products such as casein, the government today withdrew duty benefits on such exports with immediate effect.
“DEPB (Duty Entitlement Passbook) benefit stands withdrawn for milk products for shipments with effect from January 25,” the Directorate General of Foreign Trade (DGFT) said in a notification.
Under the DEPB scheme, the government refunds Customs duty on imported raw material for manufacturing products meant for exports. The DGFT said export of skimmed milk products, casein and any other milk products should not be entitled for duty benefit, with respect to shipments made on or after January 25.
Milk prices have increased by six-seven per cent since December. Prices of skimmed milk powder are also at an all-time high of around Rs165 per kg. Milk is a major component in the food basket and has a weight of 4.37 per cent in the wholesale price index.
The recent spurt in food inflation has been caused by rising prices of milk, vegetables, fruits and eggs.