Amul red flag over Europe trade deal

Amul, India’s largest dairy co-operative of India has expressed concerns over the free trade agreement (FTA) being negotiated between India and European Union (EU).

R S Sodhi, managing director of Amul, has communicated it to the commerce minister that if the demands of the EU are met while finalising the agreement then it will severely affect the Rs 3 lakh crore  milk processing industry in India.

The EU’s demands include protection of cheeses like Gouda, Feta and Emmenthal under GI (Geographical Indication) protection, meaning that Indian producers cannot give such qualitative names to their own cheese.

That’s because the origins of such variants can be traced back to Europe.

Now several India cheese producers including Amul use words such as Gouda and Emmenthal selling their versions and this will consequently have to be withdrawn if EU’s demands are met. The cheese industry in India is believed to rack up around Rs1,000 crore sales annually.

Countering this, Sodhi said even Europeans companies sell products such as Paneer and Lassi, which are believed to have originated in India, without any talk of GI protection for them.

The other bone of contention is that EU does not allow import of dairy products from India saying they don’t meet the consumption standards.

Sodhi retorts: “EU subsidises milk farmers by giving various incentives on export of their dairy products, which actually make them cheaper than the cost. So EU wants to export such subsidised dairy products to India without giving access to Indian dairy products to its own market, which have large non-resident Indian population.”

Sodhi told DNA similar concerns were raised over the FTA being negotiated between India and New Zealand.

FTA is a bilateral trade agreement between nations that liberalise trade and investment between the member countries by reducing tariffs and removing investment roadblocks. India and European Union have been negotiating a FTA since 2007 and are hoping to close the argument by this April.

WHAT EU WANTS
Protection of cheeses like Gouda, Feta and Emmenthal under GI (Geographical Indication), meaning Indian cheese producers cannot give such qualitative names to their own cheese

EU does not allow import of dairy products from India on the grounds that the product don’t qualify the consumption standards

AMUL’S COUNTER
Even Europeans companies sell products called Paneer and Lassi, which are believed to have originated in India, and there’s no talk of any GI protection about them

EU wants to export heavily subsidised dairy products to India without giving Indian dairy products access to its own markets that have a large NRI population

@Nupursays