Daily sales of milk processors improved at the beginning of June after the end of the general shutdown, a devastating period when sales halved.

Sales figure is still much lower than the pre-Covid period when processors could sell over 13 lakh litres of milk daily, according to data of Bangladesh Dairy Development Forum (BDDF).

BDDF is a national level platform to carry out advocacy works that would mitigate the challenges and explore the opportunities of the dairy sector in Bangladesh.

As a result of the failure to sell milk, many small and marginal farmers are facing troubles buying feed for their cattle, the BDDF said in a paper presented at a virtual press conference yesterday.

The BDDF organised the event to share 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 budget for fiscal 2020-21, which is 26 per cent higher than that of the revised budget for the outgoing fiscal year. 

The multi-stakeholder platform—comprising dairy producers, processors, input suppliers, development 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 per cent. Only 0.56 per cent of total budget has been allocated, although fisheries and livestock is one of the worst hit sectors, it added.

It, however, lauded the government's decision to reduce import tariffs on ingredients of livestock feed -- soybean oil cake and soybean protein concentrate.

Feed cost is very high and feed accounts for 70-75 per cent of total production cost of dairy farmers, said the BDDF, adding that many countries provide subsidy for cattle feed.

Some Tk 9,500 crore have been allocated as subsidy in agriculture sector but no steps have been taken yet to provide subsidy for dairy sector, said the forum.

"It is necessary to provide subsidy for livestock feed to protect small and marginal producers," said BDDF Joint Secretary KBM Saiful Islam while presenting the paper at the event.

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 on powder milk of up to 2.5 kilogrammes have been increased. However, the increase will not contribute to the dairy development in the country.

Import of bulk field milk should be controlled, said Islam, a teacher of Sher-e-Bangla Agricultural University.

Milk imports should be discouraged to help the nation become self-sufficient in milk, said BDDF President Umme Kulsum Smrity, also a lawmaker.

The BDDF urged the government for levying 25 per cent tariff on import of all milk and milk products.

The forum also demanded the government eliminate value added tax (VAT) on all sorts of milk and milk products so that domestically-produced dairy products can be competitive in the international market.

"The government should offer a 10-year tax holiday to encourage private investors to invest in the dairy sector," said the BDDF.

It also demanded for formation of a Tk 5,000-Tk 10,000 crore guarantee fund to encourage investment in the dairy sector and introduction of cattle insurance to protect farmers from losses.

At the event, BDDF Vice Presidents Uzma Chowdhury, Quazi Emdadul Haque and Communication Secretary Md Mutashim Billah were also present.