“Fonterra, Iffco and Global Dairy Health are still working on the feasibility of large-scale dairy farming in India,” the co-op told Dairy News Australia.
However, Iffco’s proposal to set up an integrated dairy project in its Kisan special economic zone in Nellore District, Andhra Pradesh, has been rejected by authorities.
According to Press Trust of India, Iffco will be knocking on the doors of the Ministry of Commerce to reconsider the decision.The news agency says the decision could hamper the $267 million project
Iffco’s Kisan SEZ entails an investment of about $1.3billion and will be spread over 1000ha. The SEZ will undertake activities related to producing agricultural and milk products.
According to PTI, authorities rejected the proposal as it “was not in conformity with the SEZ Act and Rules”.
An unnamed official quoted in PTI says Iffco had conveyed to authorities that it may not avail of SEZ benefits until the project reaches milk volume of 500,000L/day. Iffco has already sought government permission to import 3000 cows from New Zealand in the first phase.
With the import of cows, the milk yield is projected to be around 100,000L/day, which is insufficient to set up milk plant. Iffco wants to sell milk and other products like butter and cheese under the Iffco brand. The company plans to sell its dairy products in domestic and foreign markets.
