Amul thanks PM Modi for protecting dairy sector by opting out of RCEP

Dairy Giant Amul has thanked Prime Minister Narendra Modi for opting out of Regional Comprehensive Economic Partnership (RCEP) free trade agreement. Being a part of RCEP would have sabotaged the interest of 10 crore milk producer families in India, it further said. AMUL released a statement in this regard saying, "On behalf of 36 lakh milk producers of Gujarat, Amul has thanked the Prime Minister for his exemplary leadership in protecting 10 crore milk producer families of India. It has appreciated the vision and resolve of the Prime Minister for supporting the domestic milk producers against the flood of imports of dairy products from New Zealand and Australia under the proposed RCEP."

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AMUL the umbrella brand under which 17 dairies of Gujarat market their milk and milk products, said it held several meetings with Commerce Ministry officials to apprise the government about the likely impact of offering zero duty imports of cheaper dairy commodities from Australia and New Zealand under the proposed RCEP agreement.

AMUL also highlighted the "wrong case" built by economists and lobbyists working in the Centre for Regional Trade who wrongly portrayed the need for imports by "fabricating data".

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Indian farmers, MSMEs, and dairy sector interests protected

"But finally, it was the determination and vision of Prime Minister Narendra Modi that he communicated the firmness in his resolve to not enter the RCEP by clearly stating that key concerns of our country were not addressed and that this decision would help farmers and the dairy sector," the statement read.

India has decided to back out of the proposed RCEP agreement, even as 15 other nations, which participated in the negotiation for the pact, decided to go ahead and sign it in 2020. India decided to stay out of the RCEP because the draft agreement did not provide adequate protection against the surge in cheap imports, especially from China to India after implementation of RCEP. The opt-out was in a bid to protect the interests of farmers, MSMEs and dairy sector in the country.

“India has participated in good faith in the RCEP discussion and negotiated hard with the clear-eyed view of our interests. In the given circumstances, we believe that not joining the agreement is the right decision for India,” said Vijay Thakur Singh, Secretary (East), Ministry of External Affairs.

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