The Hindu : Chamber seeks duty exemption on concentrated milk

Online edition of India's National Newspaper
Friday, Dec 12, 2003

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Business

Chamber seeks duty exemption on concentrated milk

By Our Staff Reporter

NEW DELHI DEC. 11. The Tamil Nadu Chamber of Commerce and Industry today asked the Centre to exempt concentrated milk from excise duty that, it claimed, would not only benefit farmers financially but would also provide cheaper milk to consumers.

According to the Chamber president, S. Rethinavelu, "It is a paradox that while milk and milk powder are not subjected to excise duty, 16 per cent excise duty is levied on concentrated milk along with condensed milk. How can concentrate and condensed milk be put in similar category," he questioned.

Stating that he along with a group of representatives from the chamber would meet the Union Finance Minister, Jaswant Singh, requesting him not to charge a levy on concentrated milk, he said the cost of transporting concentrated milk to deficient areas was only Rs. 1.07 per litre, while additional expenditure of 13 paise was incurred on processing, while that in the case of normal milk was Rs.3.20. Thus, sale of concentrated milk would be Rs. 2 cheaper.

"Sale of concentrated milk, which was nothing but normal milk with reduced water content and no additives, and unlike condensed milk where sugar and other additives are added, will help regulate the demand-supply mechanism effectively and avoid traffic congestion on highways," Mr. Rethinavelu said, adding that it would be the milk deficient areas which would be benefited the most from this change.

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