Dairy farmers suffer Tk 4,000cr loss for Covid-19
Dairy farmers and processors suffered nearly Tk 4,000 crore in losses, because they cannot market milk within the last 3 months due to countrywide lockdown for coronavirus.
Daily product sales of milk processors superior at the start of June after the end of the general shutdown, a devastating period when sales halved.
Sales figure continues to be much lower than the pre-Covid period when processors could put up for sale more than 13 lakh litres of milk daily, according to data of Bangladesh Dairy Advancement Forum (BDDF).
BDDF is a national level system to handle advocacy works that would mitigate the challenges and explore the possibilities of the dairy sector found in Bangladesh.
As a result of the failure to market milk, many small and marginal farmers are facing difficulties buying feed for his or her cattle, the BDDF said in a paper presented at a virtual press meeting yesterday.
The BDDF organised the function to talk about its views regarding the national budget for fiscal 2020-21 from the perspectives of the growing dairy sector.
The government has set aside Tk 3,190 crore for livestock and fisheries sector in the proposed cover fiscal 2020-21, which is 26 % higher than that of the revised cover the outgoing fiscal year.
The multi-stakeholder platform-comprising dairy producers, processors, input suppliers, expansion organisations and academia-demanded the allocation to be doubled to Tk 5,000 crore.
The BDDF said the fisheries and livestock sector's share in the GDP was more than 5 %. Only 0.56 % of total spending plan has been allocated, although fisheries and livestock is probably the worst struck sectors, it added.
It, however, lauded the government's decision to lessen import tariffs on substances of livestock feed -- soybean essential oil cake and soybean protein focus.
Feed cost is quite high and feed makes up about 70-75 % of total production expense of dairy farmers, said the BDDF, adding that lots of countries provide subsidy for cattle feed.
Some Tk 9,500 crore have already been allocated as subsidy in agriculture sector but no steps have already been taken yet to provide subsidy for dairy sector, said the forum.
"It is important to supply subsidy for livestock feed to safeguard small and marginal manufacturers," said BDDF Joint Secretary KBM Saiful Islam while presenting the paper at the function.
The BDDF also cited competition from imported powder milk and said unequal competition from imported milk was the biggest challenge for the sector.
Import duty about powder milk as high as 2.5 kilogrammes have already been increased. Even so, the increase won't donate to the dairy expansion in the country.
Import of bulk discipline milk should be controlled, said Islam, a good teacher of Sher-e-Bangla Agricultural University.
Milk imports ought to be discouraged to help the nation become self-sufficient in milk, said BDDF President Umme Kulsum Smrity, as well a lawmaker.
The BDDF urged the federal government for levying 25 % tariff on import of all milk and dairy food.
The forum also demanded the federal government eradicate value added tax (VAT) on a variety of milk and milk products so that domestically-produced dairy products can be competitive in the international industry.
"The government should give you a 10-year tax holiday to inspire private investors to purchase the dairy sector," explained the BDDF.
It also demanded for development of a Tk 5,000-Tk 10,000 crore warranty fund to inspire investment in the dairy sector and intro of cattle insurance to safeguard farmers from losses.
At the event, BDDF Vice Presidents Uzma Chowdhury, Quazi Emdadul Haque and Communication Secretary Md Mutashim Billah were as well present.
