Export of milk products to egypt

Today, India is ‘The Oyster’ of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world’s largest and fastest growing markets for milk and milk products. A bagful of ‘pearls’ awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional exports.

The liberalization of the Indian economy beckons to MNC’s and foreign investors alike.
India’s dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Moreover with WTO regulations expected to come into force in coming years all the developed countries which are among big exporters today would have to withdraw the support and subsidy to their domestic milk products sector. Also India today is the lowest cost producer of per litter of milk in the world, at 27 cents, compared with the U.S’ 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. Some of these milk producers have already obtained quality standard certificates from the authorities. This will help them in marketing their products in foreign countries in processed form.

The urban market for milk products is expected to grow at an accelerated pace of around 33% per annum to around Rs.43, 500 crores by year 2005. This growth is going to come from the greater emphasis on the processed foods sector and also by increase in the conversion of milk into milk products. By 2005, the value of Indian dairy produce is expected to be Rs 10, 00,000 million. Presently the market is valued at around Rs7, 00,000mn


1.1 Introduction 1.2 Rationale 1.3 Objective 1.4 Methodology 1.5 Limitation

1.1 Introduction

India is the largest producer of milk producing more than 100 million tons of milk per annum. Yet, her per capita milk consumption is around 250 g per day.

Indian dairy sector contributes the large share in agricultural gross domestic products. Presently there are around 70,000 village dairy cooperatives across the country. The co-operative societies are federated into 170 district milk producers unions, which is turn has 22-state cooperative dairy federation. Milk production gives employment to more than 72mn dairy farmers. In terms of total production, India is the leading producer of milk in the world followed by USA.

India has a population of more than 1 billion with diverse food habits, cultures, traditions and religions. Regional variations within the country can be mind boggling. On one hand, the country has plains with long tradition of milk production and consumption. On the other hand, there are forest and hilly regions with no tradition of dairying. Most of coastal belts also do not have much of dairy tradition.

Cow is holy for Hindus who make up more than 80 per cent of the population of India. Buffalo enjoys no such holy status. Cow slaughter is banned in many states of India. There are no restrictions on buffalo culling. All this makes India a very complex dairy country.

Production growing at only 3 per cent and consumption growing at more than double the rate is obviously going to lead to a mismatch between demand and supply. This will create opportunities for international dairy companies.

On one hand, India is expected to enter the international market with demand for commodities like skimmed milk powder and butter oil. On the other hand, growing prosperity and fast growth of organized modern retail and western style fast food outlets will lead to increased consumption of products like cheese and table butter. This will throw up opportunities for branded dairy products to enter this huge market of more than a billion people.

Observing the trend of Indian milk industry and its future international market especially for Egypt is the prime objective of this study. Facts and statistics, instead of opinions and impressions, are the key building blocks of this report.

1.2 Rationale
This research project will provide the basic detail and information on (export of milk products to Egypt from India).This research will help to know about the milk export to Egypt.
It also gives detail information on milk product market in India and Egypt, their government policies, rules and regulations.

1.3 Objective
The basic objective behind this project is to study the “Export Potential of Milk products from India to Egypt” and the policy related to them. This project involves the study of products and overall export made by India to major destination and also involves the prospects in suggestions for the same as conclusion.

I hope this project would be beneficial for new entrepreneurs who plan to enter into the field of export of dairy products in Egypt. This field is still in unorganized sector and a lot to do, to achieve the synonym for the exporter. So my main objective is to:

• To study and explore the opportunity for the developing market for Indian dairy products in the world market.
• To explore the potential market for Indian dairy products to Egypt.
• To analyze the growth and export performance of milk products in Egypt
• To study the external environmental effect in the export field of milk products.
• To provide the possible solutions to the problem.

1.4 Methodology
The study is description in nature data is collected from various journal, internet. The research project is basically a desk research work based on secondary data collected from various set of objectives. The source of data was mainly e-newspapers and journals, magazine, various internet sites (including APEDA, NDDB).
The study was conducted in following manner

• Analysis of industry in the countries.
• The trade between both the countries were studied.
• The recent trade data’s were studied.
• India’s export potential in Milk products.
• Future prospects of both the countries.
1.5 Limitation
Primary data was not collected Limitations of cost, distance, time and certain natural incidences have restricted the collection of primary data, but it would be my constant endeavor to add to this study through primary data.
• Time limitation.
• Limited resources available.
• Today trend is fast changing trend. It might be necessary to review and reconsider the respect of the report of the existing trends.
• Only secondary data was considered .data the up to base on available data.
• Due to lack of time and resources for the collection of primary data, certain critical factors may go unnoticed leaving outcome to debate.
• Latest changes in external and internal environment of may affect the findings, which is not available on news, till the date.


2.1 Indian (Traditional) Milk Products
2.2 Western Milk Products

2. Product Profile
Under the product profile, first we would observe the facts about the Indian Fresh Milk, Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6% protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5% protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year 2000) the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267 per MT. Fresh pasteurized milk is available in packaged form. However, a large part of milk consumed in India is not pasteurized, and is sold in loose form by vendors. Sterilized milk is scarcely available in India.
Packaged milk can be divided according to fat content as follows,
Whole (full cream) milk – 6% fat
Standardized (toned) milk – 4.5% fat
Doubled toned (low fat) milk – 3% fat
another category of milk, which has a small market is flavored milk.
The product MILK under this report is categorized into two major groups based on the different culture, tradition, and taste. i.e.

2.1 Indian (Traditional) Milk Products

There are a large variety of traditional Indian milk products such as:
Makkhan – Unsalted butter.
Ghee – Butter oil prepared by heat clarification, for longer shelf life.
Kheer – a sweet mix of boiled milk, sugar and rice.
Basundi – milk and sugar boiled down till it thickens.
Rabri – sweetened cream.
Dahi – a type of curd.
Lassi – curd mixed with water and sugar/ salt.
Channa/Paneer – milk mixed with lactic acid to coagulate. Khoa – evaporated milk, used as a base to produce sweet meats.
Consumers while purchasing dairy products look for freshness, quality, taste and texture, variety and convenience. Products like Dahi and sweets like Kheer, Basundi, Rabri are perishable products with a shelf life of less than a day. These products are therefore manufactured and sold by local milk and sweet shops. There are several such small shops within the vicinity of residential areas. Consumer loyalty is built by consistent quality, taste and freshness. There are several sweetmeat shops, which have built a strong brand franchise, and have several branches located in various parts of a city.
Branding of Traditional Milk Products
Among the traditional milk products, only some products like Ghee, Lassi, Chhachh, are currently marketed, in branded form. Main brands for Ghee are Sagar, MilkMan (Britannia), Amul (GCMMF), Aarey (Mafco Ltd), Vijaya (AP Dairy Development Cooperative Federation) and so on.

With increasing urbanization and changing consumer preferences, there is possibility of large scale manufacture of indigenous milk products also. The equipments in milk manufacturing have versatility and can be adapted for several products. For instance, equipments used to manufacture yogurt also can be adapted for large scale production of Indian curd products (Dahi and lassi). Significant research work has been done on dairy equipments under the aegis of NDDB.

Mafco Limited sells Lassi under the Aarey brand and flavored milk under the Energee franchise (in the Western region, mainly in Mumbai). Britannia has launched flavored milk in various flavors in tetra packs.

GCMMF has also made a beginning in branding of other traditional milk products with the launch of packaged Paneer under the Amul brand. It has also created a new umbrella brand “Amul Mithaee”, for a range of ethnic Indian sweets that are proposed to be launched the first new product Amul Mithaee Gulabjamun has already been launched in major Indian markets.

2.2 Western Milk Products
Western milk products such as butter, cheese have gained popularity in the Indian market only during the last few years. However consumption has been expanding with increasing urbanization.
Most Indians prefer to use home made white butter (makkhan) for reasons of taste and affordability. Most of the branded butter is sold in the towns and cities. Butter is a dairy product made by churning fresh or fermented cream or milk. Butter is used as a spread and a condiment, as well as in cooking applications such as baking, sauce making, and frying. Butter consists of butterfat surrounding minuscule droplets consisting mostly of water and milk proteins. The most common form of butter is made from cows’ milk, but it can also be made from the milk of other mammals, including sheep, goats, buffalo, and yaks. Salt, flavorings, or preservatives are sometimes added to butter
Cheese is a food consisting of proteins and fat from milk, usually the milk of cows, buffalo, goats, or sheep. It is produced by coagulation of the milk protein casein. It is valuable for its portability, long life, and high content of fat, protein, calcium, and phosphorus. Cheese is more compact and has a longer shelf life than the milk from which it is made.

Milk Powder:
Milk powder is mainly of 2 types
• Whole milk powder
• Skimmed milk powder
Whole milk powder contains fat, as distinguished from skimmed milk powder, which is produced by removing fat from milk solids. Skimmed milk powder is preferred by diet conscious consumers. Dairy whiteners contain more fat than skimmed milk powder but less compared to whole milk powder. Dairy whiteners are popular milk substitute for making tea, coffee etc.

Branding of western milk products
Nestlé brand milk products, amul milk products are very known companies which brands the western dairy products and sell them globally as well as domestically. However some other companies like Gujarat Co-operative milk Marketing Federation Limited, Milk food Limited, SmithKline Beecham Limited, Indian Industries Limited, H.J. Heinz Limited., Britannia., Cadbury are also in the same field.
These companies also added a wide to Indian taste; they have a wide range of their product mix of dairy products in both national and world market.


3.1 India: geography, government, economy, Export-
3.2 Egypt: geography, government, economy, Export-

3 Country Profile
3.1 India

3.1.1 Background:
Aryan tribes from the northwest infiltrated onto the Indian subcontinent about 1500 B.C.; their merger with the earlier Dravidian inhabitants created the classical Indian culture. The Maurya Empire of the 4th and 3rd centuries B.C. – which reached its zenith under ASHOKA – united much of South Asia. The Golden Age ushered in by the Gupta dynasty (4th to 6th centuries A.D.) saw a flowering of Indian science, art, and culture. Arab incursions starting in the 8th century and Turkic in the 12th were followed by those of European traders, beginning in the late 15th century. By the 19th century, Britain had assumed political control of virtually all Indian lands. Indian armed forces in the British army played a vital role in both World Wars. Nonviolent resistance to British colonialism led by Mohandas GANDHI and Jawaharlal NEHRU brought independence in 1947. The subcontinent was divided into the secular state of India and the smaller Muslim state of Pakistan. A third war between the two countries in 1971 resulted in East Pakistan becoming the separate nation of Bangladesh. India’s nuclear weapons testing in 1998 caused Pakistan to conduct its own tests that same year. The dispute between the countries over the state of Kashmir is ongoing, but discussions and confidence-building measures have led to decreased tensions since 2002. Despite impressive gains in economic investment and output, India faces pressing problems such as significant overpopulation, environmental degradation, extensive poverty, and ethnic and religious strife.

3.1.2 Geography

Location: Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan

Geographic coordinates: 20 00 N, 77 00 E

Area: total: 3,287,590 sq km
land: 2,973,190 sq km
water: 314,400 sq km

Climate: varies from tropical monsoon in south to temperate in north

Natural resources: coal (fourth-largest reserves in the world), iron ore, manganese, mica, bauxite, titanium ore, chromite, natural gas, diamonds, petroleum, limestone, arable land.

Geography – note: dominates South Asian subcontinent; near important Indian Ocean trade routes; Kanchenjunga, third tallest mountain in the world, lies on the border with Nepal

3.1.3. People

Population: 1,147,995,898 (July 2008 est.)

Age structure 0-14 years: 31.5% (male 189,238,487/female 172,168,306)
15-64 years: 63.3% (male 374,157,581/female 352,868,003)
65 years and over: 5.2% (male 28,285,796/female 31,277,725) (2008 est.)

Population growth rate: 1.578% (2008 est.)

Nationality: noun:Indian(s)
adjective: Indian

Ethnic groups: Indo-Aryan 72%, Dravidian 25%, Mongoloid and other 3% (2000)

Religions: Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1% (2001 census)

Languages: English enjoys associate status but is the most important language for national, political, and commercial communication; Hindi is the national language and primary tongue of 30% of the people; there are 21 other official languages: Assamese, Bengali, Bodo, Dogri, Gujarati, Kannada, Kashmiri, Konkani, Maithili, Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjabi, Sanscrit, Santhali, Sindhi, Tamil, Telugu, and Urdu; Hindustani is a popular variant of Hindi/Urdu spoken widely throughout northern India but is not an official language

Literacy: definition: age 15 and over can read and write
female: 47.8% (2001 census)

3.1.4 Government

Country name: conventional long form: Republic of India
conventional short form: India
local long form: Republic of India/Bharatiya Ganarajya
local short form: India/Bharat

Government type: federal republic

Capital: name: New Delhi
geographic coordinates: 28 36 N, 77 12 E
time difference: UTC+5.5 (10.5 hours ahead of Washington, DC during Standard Time)

Administrative divisions: 28 states and 7 union territories*; Andaman and Nicobar Islands*, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chandigarh*, Chhattisgarh, Dadra and Nagar Haveli*, Daman and Diu*, Delhi*, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand, Karnataka, Kerala, Lakshadweep*, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Puducherry*, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, West Bengal

Independence: 15 August 1947 (from UK)

National holiday: Republic Day, 26 January (1950)

Constitution: 26 January 1950; amended many times

Legal system: based on English common law; judicial review of legislative acts; accepts compulsory ICJ jurisdiction with reservations; separate personal law codes apply to Muslims, Christians, and Hindus

Flag description: three equal horizontal bands of saffron (subdued orange) (top), white, and green with a blue chakra (24-spoked wheel) centered in the white band; similar to the flag of Niger, which has a small orange disk centered in the white band

3.1.5 Economy

Economy – overview: India’s diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India’s output with less than one third of its labor force. About three-fifths of the work force is in agriculture, leading the United Progressive Alliance (UPA) government to articulate an economic reform program that includes developing basic infrastructure to improve the lives of the rural poor and boost economic performance. The government has reduced controls on foreign trade and investment. Higher limits on foreign direct investment were permitted in a few key sectors, such as telecommunications. However, tariff spikes in sensitive categories, including agriculture, and incremental progress on economic reforms still hinder foreign access to India’s vast and growing market. Privatization of government-owned industries remains stalled and continues to generate political debate; populist pressure from within the UPA government and from its Left Front allies continues to restrain needed initiatives. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. India achieved 8.5% GDP growth in 2006, and again in 2007, significantly expanding production of manufactures. India is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers. Economic expansion has helped New Delhi continue to make progress in reducing its federal fiscal deficit. However, strong growth combined with easy consumer credit and a real estate boom fueled inflation concerns in 2006 and 2007, leading to a series of central bank interest rate hikes that have slowed credit growth and eased inflation concerns. The huge and growing population is the fundamental social, economic, and environmental problem.

GDP (purchasing power parity): $2.965 trillion (2007 est.)

Industries: textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software

Current account balance: $-18.53 billion (2007 est.)

Exports: $140.8 billion f.o.b. (2007 est.)

Exports – commodities: petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufactures

Exports – partners: US 17%, UAE 8.3%, China 7.7%, UK 4.3% (2006)

Imports: $224.1 billion f.o.b. (2007 est.)

Imports – commodities: crude oil, machinery, gems, fertilizer, chemicals

Imports – partners: China 8.7%, US 6%, Germany 4.7%, Singapore 4.6% (2006)

Reserves of foreign exchange and gold: $239.4 billion (31 December 2007 est.)

Currency (code): Indian rupee (INR)

Exchange rates: Indian rupees per US dollar – 41.487 (2007), 45.3 (2006), 44.101 (2005), 45.317 (2004), 46.583 (2003)
Fiscal year: 1 April – 31 March

3.2. Egypt

3.2.1 Background

The regularity and richness of the annual Nile River flood, coupled with semi-isolation provided by deserts to the east and west, allowed for the development of one of the world’s great civilizations. A unified kingdom arose circa 3200 B.C., and a series of dynasties ruled in Egypt for the next three millennia. The last native dynasty fell to the Persians in 341 B.C., who in turn were replaced by the Greeks, Romans, and Byzantines. It was the Arabs who introduced Islam and the Arabic language in the 7th century and who ruled for the next six centuries. A local military caste, the Mamluks took control about 1250 and continued to govern after the conquest of Egypt by the Ottoman Turks in 1517. Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub, but also fell heavily into debt. Ostensibly to protect its investments, Britain seized control of Egypt’s government in 1882, but nominal allegiance to the Ottoman Empire continued until 1914. Partially independent from the UK in 1922, Egypt acquired full sovereignty with the overthrow of the British-backed monarchy in 1952. The completion of the Aswan High Dam in 1971 and the resultant Lake Nasser have altered the time-honored place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population (the largest in the Arab world), limited arable land, and dependence on the Nile all continue to overtax resources and stress society. The government has struggled to meet the demands of Egypt’s growing population through economic reform and massive investment in communications and physical infrastructure.

3.2.2 Geography

Location : Northern Africa, bordering the Mediterranean Sea, between Libya and the Gaza Strip, and the Red Sea north of Sudan, and includes the Asian Sinai Peninsula

Geographic coordinates: 27 00 N, 30 00 E

Area: total: 1,001,450 sq km
land: 995,450 sq km
water: 6,000 sq km

Area – comparative: slightly more than three times the size of New Mexico

Climate: desert; hot, dry summers with moderate winters

Natural resources: petroleum, natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, zinc

Land use: arable land: 2.92%
permanent crops: 0.5%
other: 96.58% (2005)

Geography – note: controls Sinai Peninsula, only land bridge between Africa and remainder of Eastern Hemisphere; controls Suez Canal, a sea link between Indian Ocean and Mediterranean Sea; size, and juxtaposition to Israel, establish its major role in Middle Eastern geopolitics; dependence on upstream neighbors; dominance of Nile basin issues; prone to influxes of refugees

3.2.3 People

Population: 81,713,520 (July 2008 est.)

Age structure: 0-14 years: 31.8% (male 13,292,961/female 12,690,711)
15-64 years: 63.5% (male 26,257,440/female 25,627,390)
65 years and over: 4.7% (male 1,636,560/female 2,208,455) (2008 est.)

Population growth rate: 1.682% (2008 est.)

Nationality: noun: Egyptian(s)
adjective: Egyptian

Ethnic groups: Egyptian 99.6%, other 0.4% (2006 census)

Religions: Muslim (mostly Sunni) 90%, Coptic 9%, other Christian 1%

Languages: Arabic (official), English and French widely understood by educated classes

Literacy: definition: age 15 and over can read and write
total population: 71.4%
male: 83%
female: 59.4% (2005 est.)

3.2.4 Government

Country name: conventional long form: Arab Republic of Egypt
conventionalshort form: Egypt
local long form: Jumhuriyat Misr al-Arabiyah
local short form: Misr
former: United Arab Republic (with Syria)

Government type: republic

Capital name: Cairo
geographic coordinates: 30 03 N, 31 15 E
time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Friday in April; ends last Thursday in September

Administrative divisions: 26 governorates (muhafazat, singular – muhafazah); Ad
Daqahliyah, Al Bahr al Ahmar (Red Sea), Al Buhayrah (El Beheira), Al Fayyum (El Faiyum), Al Gharbiyah, Al Iskandariyah (Alexandria), Al Isma’iliyah (Ismailia), Al Jizah (Giza), Al Minufiyah (El Monofia), Al Minya, Al Qahirah (Cairo), Al Qalyubiyah, Al Wadi al Jadid (New Valley), As Suways (Suez), Ash Sharqiyah, Aswan, Asyut, Bani Suwayf (Beni Suef), Bur Sa’id (Port Said), Dumyat (Damietta), Janub Sina’ (South Sinai), Kafr ash Shaykh, Matruh (Western Desert), Qina (Qena), Shamal Sina’ (North Sinai), Suhaj (Sohag)

Independence: 28 February 1922 (from UK)

National holiday Revolution Day, 23 July (1952)

Constitution: 11 September 1971; amended 22 May 1980, 25 May 2005, and 26 March 2007

Legal system: based on Islamic and civil law (particularly Napoleonic codes); judicial review by Supreme Court and Council of State (oversees validity of administrative decisions); accepts compulsory ICJ jurisdiction with reservations

Flag description: three equal horizontal bands of red (top), white, and black; the national emblem (a gold Eagle of Saladin facing the hoist side with a shield superimposed on its chest above a scroll bearing the name of the country in Arabic) centered in the white band; design is based on the Arab Liberation flag and similar to the flag of Syria, which has two green stars in the white band, Iraq, which has an Arabic inscription centered in the white band, and Yemen, which has a plain white band.

3.2.5 Economy

Economy – overview: Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. In the last 30 years, the government has reformed the highly centralized economy it inherited from President Gamel Abdel NASSER. In 2005, Prime Minister Ahmed NAZIF’s government reduced personal and corporate tax rates, reduced energy subsidies, and privatized several enterprises. The stock market boomed, and GDP grew about 5% per year in 2005-06, and topped 7% in 2007. Despite these achievements, the government has failed to raise living standards for the average Egyptian, and has had to continue providing subsidies for basic necessities. The subsidies have contributed to a sizeable budget deficit – roughly 7.5% of GDP in 2007 – and represent a significant drain on the economy. Foreign direct investment has increased significantly in the past two years, but the NAZIF government will need to continue its aggressive pursuit of reforms in order to sustain the spike in investment and growth and begin to improve economic conditions for the broader population. Egypt’s export sectors – particularly natural gas – have bright prospects.

GDP (purchasing power parity): $405.4 billion (2007 est.)

GDP (official exchange rate): $127.9 billion (2007 est.)

Agriculture – products: cotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water buffalo, sheep, goats

Industries: textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals, light manufactures.

Current account balance: $500.9 million (2007 est.)

Exports: $24.45 billion f.o.b. (2007 est.)
Exports – commodities: crude oil and petroleum products, cotton, textiles, metal products, chemicals

Exports – partners: US 9.7%, Italy 9.5%, Spain 7.6%, Syria 5.5%, Saudi Arabia 4.9%, UK 4.2% (2007)

Imports: $44.95 billion f.o.b. (2007 est.)
Imports – commodities: machinery and equipment, foodstuffs, chemicals, wood products, fuels
Imports – partners: US 11.7%, China 9.7%, Italy 6.4%, Germany 6.3%, Saudi Arabia 4.7%, Russia 4.3% (2007)

Reserves of foreign exchange and gold: $31.37 billion (31 December 2007 est.)
Currency (code): Egyptian pound (EGP)
Exchange rates: Egyptian pounds (EGP) per US dollar – 5.67 (2007), 5.725 (2006), 5.78 (2005), 6.1962 (2004), 5.8509 (2003)

Fiscal year: 1 January – 31 December


4.1 Programmes
4.2 Policies

4. Government Policies and Programmes

4.1 Programmes

4.1.1. Operation Flood
It was one of the world’s largest rural development programmes, Launched in 1970, Operation Flood has helped dairy farmers direct their own development, placing control of the resources they create in their own hands. A National Milk Grid links milk producers throughout India with consumers in over 700 towns and cities, reducing seasonal and regional price variations while ensuring that the producer gets fair market prices in a transparent manner on a regular basis.
The bedrock of Operation Flood has been village milk producers’ cooperatives, which procure milk and provide inputs and services, making modern management and technology available to members. Operation Flood’s objectives included :
Increase milk production (“a flood of milk”)
Augment rural incomes
Reasonable prices for consumers
Operation Flood was implemented in three phases. Phase I (1970-1980) was financed by the sale of skimmed milk powder and butter oil gifted by the European Union then EEC through the World Food Programme. NDDB planned the programme and negotiated the details of EEC assistance.
During its first phase, Operation Flood linked 18 of India’s premier milksheds with consumers in India’s four major metropolitan cities: Delhi, Mumbai, Kolkata and Chennai.
Operation Flood’s Phase II (1981-85) increased the milksheds from 18 to 136; 290 urban markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of 43,000 village cooperatives covering 4.25 million milk producers had become a reality.
Phase III (1985-1996) enabled dairy cooperatives to expand and strengthen the infrastructure required to procure and market increasing volumes of milk. Veterinary first-aid health care services, feed and artificial insemination services for cooperative members were extended, along with intensified member education.

4.1.2. Vishesh Krishi and Gram Udyog Yojana (VKGUY)
The VKGUY was launched to promote exports, mainly of agricultural produces, including value-added products. Though milk products were initially granted incentive under this scheme, the government had withdrawn it in April last year before reinstating it in December 2008.
Keeping in view the objective of Foreign Trade Policy to promote employment generation in rural and semi urban areas, it has been decided to incentives the export of Gram Udyog products i.e. village and cottage industry products by awarding a duty free scrip @ 5 per cent of FOB value of exports under the expanded Vishesh Krishi Upaj Yojana, which has been renamed as Vishesh Krishi and Gram Udyog Yojana.
However, the duty credit scrip shall be granted only at a reduced rate of 3.5 per cent of the FOB value of exports in such cases where the exporter has availed the benefits under Chapter 4 of this Policy for import of Agriculture Inputs (other than catalysts, consumable and packing materials) relating to export item under this scheme. The certificate can be used for import of all freely importable items except capital goods or other such items as have been notified by DGFT. The scrip and the items imported against it shall be freely transferable.
In terms of number of applications received during April to December, 2006, a growth rate of 394 per cent has been recorded over the number of applications during April-December 2005. Similarly, in terms of value of Duty Credit issued, a growth rate of 296 per cent was recorded.
Service Exports
A number of trade friendly features have been included in the Served from India Scheme to meet the requirements of Service Exporters:
• Service exports in Indian Rupees, which are otherwise considered as having been paid for in free foreign exchange by RBI, will now qualify for benefits under the Served from India Scheme. In addition, the foreign exchange earned through International Credit Cards and other instruments as permitted by RBI for rendering of service by the service providers shall be taken into account for the purposes of computation of entitlement under the Scheme.

• Benefits of the Scheme earned by one service provider of a Group company can now be utilized by other service provider of the same Group Company including managed hotels. The measure aims to supporting the Group service companies not earning foreign exchange in getting access to the international quality products at competitive prices and providing services of international standards. This new initiative allows transfer of both the scrip and the imported input to the Group Service Company, whereas the earlier provision allowed transfer of imported material only.

• Stand-alone restaurants will now be eligible for benefits under Served from India Scheme @ 10 per cent of FOB value of exports (instead of the earlier 20 per cent).

4.1.3. Intensive Dairy Development Programme (IDDP)
The scheme ‘Integrated Dairy availability of milk’ Milk production and Development Project (IDDP) in Non-Operation Flood, Hilly and Backward Areas’ was launched in 1993-94 on 100% grant-in-aid basis. The main objectives of the scheme were as under:
? Development of milk cattle;
Increasing milk production by providing technical input services;
? Procurement, processing and marketing of milk in a cost effective manner;
Ensure remunerative prices to the milk producers;
Generate additional employment opportunities;
Improve social, nutritional and economic status of residents of comparatively more
disadvantaged areas.
• Implementing Agency :
State Dairy Federations / District Milk Union
• Modification :
The scheme was modified during March, 2005. The modified scheme has been named as ‘Intensive Dairy Development Programme’ (IDDP) and is being implemented in hilly and backward areas and also in districts, which received less than Rs.50.00 lakh for dairy development activities under Operation Flood programme.
The funds under the revised scheme are released directly to the Implementing agencies (State Milk federations/ Unions) and the projects are implemented by the State Milk federations/ Unions in view of their expertise and professionalism.
Since inception of the scheme, 84 projects have been approved in 206 districts of 25 States and a UT with a total outlay of Rs.480.05 crore till 31.12.2007. These projects have benefited about 14.97 lakh farmers in 24,520 villages procuring over 17.65 lakh litres of milk per day till 31.12.2007. During 2007-08, two new projects in Rajasthan and Tamil Nadu have also been approved.

Table No.: Year-wise outlay and expenditure under the scheme for the last 5 years are given below:
Rs, in crore
Year 2002-03
2003-04 2004-05 2005-06 2006-07 2007-08
B.E Provision 20.50 18.88 20.00 50.00 23.00 27.00

Actual Exp. 16.38
25.70 39.91 33.61 21.20
(up to 31.10.07)
Source: www.business.gov.in
4.1.4 Intensive Dairy Development Programme
The Scheme, modified as Intensive Dairy Development Programme on the basis of the recommendation of the evaluation studies was launched during Eighth Plan period and is being continued during the Eleventh Plan with an outlay of Rs. 29.99 crore for 2008-09. So far 84 projects with an outlay of 480.05 crore have been sanctioned in 25 States and one UT. A sum of Rs. 330.35 crore has been released to various State Governments upto 31st March, 2008 and 206 districts have been covered. The scheme has benefited about 15.07 lakh farm families and organized about 24808 village level Dairy Cooperative Societies till 31st March, 2008.

4.1.5. Assistance to Cooperative
The scheme aims at revitalizing the sick dairy cooperative unions at the district level and Co-operative federations at the state level. National Dairy Development Board (NDDB) (External website that opens in a new window) is the project implementing agency and central grant is released through NDDB. The scheme is being continued during Eleventh Five Year Plan with a tentative outlay of Rs. 50 crore. Since inception in 1999-2000, 32 rehabilitation proposals of milk unions in 12 states namely, Madhya Pradesh, Chhattisgarh, Karnataka, Uttar Pradesh, Haryana, Kerala, Maharashtra, Assam, Nagaland, Punjab, West Bengal and Tamil Nadu at a total cost of Rs. 197.37 crore with a central share of Rs. 98.68 crore have been approved upto 31.03.2008. A total sum of Rs. 79.19 crore including Rs. 5.05 crore in 2007-08 has been released till 31.03.08. An amount of Rs. 7.00 crore has been provided for continuation of the scheme during 2008-09. Out of which, a sum of Rs. 2.19 crore has also been released to the concerned milk unions including a new project approved for Saharanpur Milk Union in Uttar Pradesh State during the current financial year till 31.05.08.
4.1.6. Dairy/Poultry Venture Capital Fund
To bring about structural changes in the unorganized sector, the measures like milk processing at village level, marketing of pasteurized milk in a cost effective manner, quality up-gradation of traditional technology to handle commercial scale using modern equipment and management skills and to encourage new pieces of birds and low input technology for poultry farming among rural farmers, a new scheme viz, Dairy/Poultry Venture Capital Fund was initiated in the Tenth Five Year Plan. The assistance under the scheme is provided to the rural/urban beneficiaries; under the scheme include agriculture farmers/individual entrepreneurs and groups of all sections of unorganized as well organized sector including cooperatives and NGO from any part of the country.
The scheme was approved in December, 2004 with a total outlay of Rs. 25.00 corre. It is being implemented through NABARD and the funds are released to NABARD to be kept as revolving fund. Since inception, a sum of Rs. 77.99 crore has been released to NABARD for implementation of scheme upto 31st March, 08. There is a budget provision of Rs. 40.00 crore for implementation of the scheme during 2008-09, out of which Rs. 20.00 crore have been released till 30/6/08.

4.1.7. Other Programmes
Construction of a modern abattoir with a cold storage facility would require Rs. 10 crore. A similar facility in the three taluks would require a total of Rs. Six crore. At the hobli levels, Rs. 80 lakh would be required per project. Besides this, a modern pig abattoir is planned in Madikeri at the cost of Rs. two crore.
The other programmes that the Department proposes to undertake include primary veterinary centres, establishing of polyclinics at the taluk level and insurance coverage for livestock.

4.2 Policies
Since liberalization several policy measures have been taken with regard to regulation & control, fiscal policy, export & import laws, taxation, exchange & interest rate control, export promotion and incentives to high priority industries. Milk industries and agro industries have been accorded high priority with a number of important relieves and incentives.
Some of the important policy changes are as follows:
4.2.1. Milk and Milk Product Order-1992
The Government of India notified the Milk and Milk Product Order on June 1992. As per the provisions of this order, any person/dairy plant handling more than 10,000 liters per day of milk or 500 MT of milk solids per annum needs to be registered with the registering authority appointed by the Central Government.
The Order was amended from time to time as per the decision taken in Milk and Milk Product Advisory Board and as per request received from State Governments. In pursuance of the Cabinet decision dated 22/2/2002, this Department has amended MMPO-1992 vide Milk and Milk Product (Amendment) Order 2002, SO No. 335(E) dated 26.3.2002, where the provisions of assigning milk shed has been done away with. The power of granting Registration to the units up to 2.00 lakh liters per day processing capacity where entire activities of units lies within a State has been delegated to concerned State Registering Authority.

4.2.2 Regulation & Control
• As per extant policy FDI up to 100% is permitted under the automatic route in the food infrastructure (Food Park, Cold Chain/warehousing).
• FDI policy for manufacture of items reserved for the SSI sector is uniform for all items so reserved and a separate dispensation for items in the food processing sector is not contemplated.
• No industrial license is required for almost all of the food & agro processing industries(including milk, meat, grain processing, fish processing etc.) except for some items like: beer, potable alcohol & wines, cane sugar, hydrogenated animal fats & oils etc. and items reserved for exclusive manufacture in the small scale sector. Items reserved for S.S.I. include pickles & chutneys, bread, confectionery (excluding chocolate, toffees and chewing-gum etc.), rapeseed, mustard, sesame & groundnut oils (except solvent extracted), ground and processed spices other than spice oil and oleoresins, sweetened cashew nut products, tapioca sago and tapioca flour.
• Up to a maximum of 24% foreign equity is allowed in SSI sector
• Use of foreign brand names are now freely permitted.
• MRTP (Monopolies & Restrictive Trade Practices Act) rules and FERA (Foreign Exchange Regulation Act) regulations have been relaxed to encourage investment and expansion by large corporate.
• Most of the items can be freely imported and exported except for items in the negative lists for imports & exports.. Capital goods are also freely importable, including second hand ones in the food processing sector.

4.2.3 Regulatory Framework
• The dairy industry was de-licensed in 1991 with a view to encourage private investment and flow of capital and new technology in the segment. Although de-licensing attracted a large number of players, concerns on issues like excess capacity, sale of contaminated/ substandard quality of milk etc induced the Government to promulgate the MMPO (Milk and Milk Products Order) in 1992. Milk and Milk Products Order (MMPO) regulates milk and milk products production in the country. The order requires no permission for units handling less than 10,000 liters of liquid milk per day or milk solids up to 500 tpa. MMPO prescribes State registration to plants producing between 10,000 to 75,000 liters of milk per day or manufacturing milk products containing between 500 to 3,750 tonnes of milk solids per year. Plants producing over 75,000 liters per day or more

4.2.4 Fiscal Policy & Taxation
• Wide ranging fiscal policy changes have been introduced progressively. Excise & Import duty rates have been reduced substantially. Many processed food items are totally exempt from excise duty.
• Custom duty rates have been substantially reduced on plant & equipments, as well as on raw materials and intermediates, especially for export production.
• Corporate taxes have been reduced and there is a shift towards market related interest rates. There are tax incentives for new manufacturing units for certain years, except for industries like : beer, wine , aerated water using flavouring concentrates, confectionery & chocolates etc.
• Indian currency (rupee) is now fully convertible on current account and convertibility on capital account with unified exchange rate mechanism is foreseen in coming years.
• Repatriation of profits is freely permitted in many industries except for some, where there is an additional requirement of balancing the dividend payments through export earnings.

4.2.5 Export Promotion
• Food processing industry is one of the thrust areas identified for exports. Free trade zones (FTZ) and export processing zones (EPZ) have been set up with all infrastructure. Also, setting up of 100% Export oriented units (EOU) is encouraged in other areas. They may import free of duty all types of goods, including capital foods.
• Capital goods, including spares up to 20% of the CIF value of the Capital goods may be imported at a concessional rate of Customs duty subject to certain export obligations under the EPCG scheme. Export linked duty free imports are also allowed.
• Units in EPZ/FTZ and 100% Export oriented units can retain 50% of foreign exchange receipts in foreign currency accounts.
• 50% of the production of EPZ/FTZ and 100% EOU units is saleable in domestic tariff area.
• All profits from export sales are completely free from corporate taxes. Profits from such exports are also exempt from Minimum Alternate Tax (MAT).

4.2.6. Promotional Initiatives

In order to create awareness about the potential and prospects of Food Processing Industries in the country, this Ministry provides assistance for:
• Organizing Workshops, Seminars, Exhibitions and Fairs.
• Studies/Surveys etc.
• Publications.

4.2.7 Policy Measures
• Milk industry has been identified as industry with employment potential.
• Food processing to be a priority for bank credit. NABARD to create a refinancing window with a corpus of Rs.1000 crore, especially for agro-processing infrastructure and market development.
• National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) to be set up; Paddy Processing Research Centre (PPRC), Thanjavur to be developed into a national level institute.
• Rs.150 crore earmarked for NHM for terminal markets.
Thus government of India tend to be more liberalized for the promotion of Indian dairy industry by providing a number of development programmes, policy measures and various kind of incentive to this industry.


5.1 Export Performance 5.2 Trading Partners 5.3 Export of Milk Products to Egypt
5.4 Trading Partner of Egypt

5. India Milk Industry

The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world.
With the increase in milk production, Maharashtra now regularly exports milk to neighbouring states. It has also initiated a free school feeding scheme, benefiting more than three million school children from over 19,000 schools all over the State.

More than 7,885 million people economically active in agriculture in the world, probably 2/3 or even more ¾ of them are wholly or partly dependent on livestock farming. India is endowed with rich flora & Fauna & continues to be vital avenue for employment and income generation, especially in rural areas. India, which has 66% of economically active population, engaged in agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The share of livestock product is estimated at 21% of total agricultural sector.

5.1 Export Performance

India is the world’s highest milk producer and all set to become the world’s largest food factory. In celebration, Indian Dairy sector is now ready to invite NRIs and Foreign investors to find this country a place for the mammoth investment projects. Be it investors, researchers, entrepreneurs, or the merely curious – Indian Dairy sector has something for everyone.

Milk production is relatively efficient way of converting vegetable material into animal food. Dairy cow’s buffalo’s goats and sheep can eat fodder and crop by products which are not eaten by humans. Yet the loss of nutrients energy and equipment required in milk handling inevitably make milk comparatively expensive food. Also if dairying is to play its part in rural development policies, the price to milk producers has to be remunerative. In a situation of increased international prices, low availabilities of food aid and foreign exchange constraints, large scale subsidization of milk conception will be difficult in the majority of developing countries.

Hence in the foreseeable future, in most of developing countries milk and milk products will not play the same roll in nutrition as in the affluent societies of developed countries. Effective demand will come mainly from middle and high income consumers in urban areas.
Tab. 5.1.1 there is export of milk and its products during last three years, shown in the table as following:
Value in Rs. Lakh Quantity in MT
2005-2006 2006-2007 2007-2008
Country QTY(2004-2005) Value(2004-2005) QTY(2005-2006) Value(2005-2006) QTY(2006-2007) Value(2006-2007)
U ARAB EMTS 4,094.80 4,456.20 7,071.03 6,548.78 6,429.40 6,395.23
EGYPT A RP 2,426.18 1,866.81 6,784.19 5,646.29 5,387.38 5,514.07
BANGLADESH 16,053.67 10,922.16 9,021.05 7,453.58 4,672.42 4,789.88
NEPAL 1,610.74 1,617.38 2,904.51 2,695.66 2,003.50 2,186.47
ALGERIA 2,873.60 2,658.76 6,420.50 5,835.37 2,026.05 2,006.36
CHINA P RP 1,067.15 605.97 3,522.12 2,837.33 1,804.65 1,769.37
THAILAND 316.87 238.26 1,309.39 1,469.90 1,792.47 1,658.31
PAKISTAN 644.81 489.49 3,985.35 3,455.98 1,732.70 1,628.31
SINGAPORE 923.86 918.83 2,967.92 1,681.93 4,185.85 1,562.12
YEMEN REPUBLC 449.53 402.71 4,797.40 4,528.02 1,458.44 1,461.68
PHILIPPINES 581.98 498.93 574.04 456.39 1,035.31 1,210.19
SAUDI ARABIA 1,189.28 1,020.73 1,519.40 1,481.40 1,184.64 1,172.88
MOROCCO 578.00 498.56 4,223.62 4,030.23 1,210.80 1,131.09
SYRIA 205.30 164.68 1,768.80 1,521.26 841.90 1,126.70
SRI LANKA 687.27 597.34 1,525.25 1,402.13 1,131.23 1,027.36
AFGHANISTAN 341.77 301.70 1,673.16 1,541.47 906.80 917.84
USA 1,195.60 2,561.61 1,768.54 2,474.79 695.43 905.14
OMAN 927.74 898.38 1,956.06 1,809.60 718.56 679.38
MADAGASCAR 575.40 501.46 922.23 786.31 624.50 590.43
IRAN 165.97 135.09 914.10 841.93 471.52 409.84
JAPAN 165.02 145.79 1,493.39 1,351.03 338.71 381.03
KUWAIT 303.36 389.14 343.90 454.24 279.16 370.87
AUSTRALIA 82.45 80.23 173.28 189.70 278.83 346.68
SPAIN 20.00 18.53 570.00 495.57 315.40 333.27
TAIWAN 101.77 101.50 171.00 150.11 125.13 297.65
LEBANON 171.97 155.83 526.30 470.08 286.25 270.67
CANADA 108.56 56.61 513.41 529.72 345.33 237.04
CHILE 0.00 0.00 0.00 0.00 243.00 226.60
JORDAN 475.50 403.49 661.00 598.21 200.42 213.78
BAHRAIN 196.10 223.65 429.13 408.56 208.65 207.75
SUDAN 132.00 117.77 359.00 326.90 204.00 194.96
MAURITIUS 0.00 0.00 201.70 215.63 149.79 162.66
KOREA RP 483.70 218.51 124.50 98.15 191.50 162.17
BHUTAN 459.18 440.16 326.25 385.85 159.99 148.97
The rest world 2550.91 2162.94 4029.87 3496.16 1731.91 1760.86
Total 42,160.04 35,869.20 75,551.39 67,668.26 45,371.62 43,457.61

Source: DGCIS Annual Export
The export of milk products has more than doubled with increasing use of milk for value addition,

With the increase in milk production, product exports have also increased. Nearly 50 per cent of the country’s output of 220 million litres of milk is being converted into products like khoya, sweets, cheese, ghee, milk powder, baby foods, malted foods and whey proteins.

The government has increased the import duty on butter oil from 30 per cent to 40 per cent to protect the domestic ghee industry from the imports from Australia and New Zealand.

The effects of the increase in duty will be seen in due course, industry has to improve its competitiveness by bringing down costs and improving the quality of products to international standards.

5.2 Trading Partners

Sanitary and phytosanitary measures thus have become mandatory for dairy exports as per WTO requirements and serious efforts need to be made to adhere to these standards.
Since time immemorial, milk continues to be the most important diet for human beings. India is the largest milk producing country in the world with an output of 88 million tonnes in 2004. Milk & Milk-based sector also known as “Dairy Sector” received an impetus after Independence when industrialization and public awakening necessitated the
establishment of organized collection, processing and distribution of milk to cater to the needs of the fast growing urban areas.

Arabian gulf countries emerged as the largest market for India’s exports of milk & milk based products thereby replacing Bangladesh which happened to be the largest market in the year 2003-03. but to this market, whereas Egypt has registered a decline of 0.05 percent the same come to Rs 5,514.07 lakh as against Rs.5,646.29 lacks in the previous year. In the previous years there were other countries witnessing upward trend comprised: Iran (400.00%), China (332.43%), Nepal (238.68%), USA (44.32%), and Sri Lanka (25.31%) in, On the other hand, the countries showing a negative growth include: Saudi Arabia (79.48%), Bangladesh (79.53%), Thailand (47.40%), Singapore (43.92%), Yemen Rep (37.82%), and Morocco (34.94%).

The main trading partner for milk export during last year were:

UAE Egypt
Nepal China
Bangladesh Shrilanka
Pakistan Thailand
Philippines USA
Iran Japan
Australia Spain
Canada UK

5.3 Export of Milk Products to Egypt
Asia is the largest dairy consuming region. It is also the largest importing region with over one half of global imports of dairy products (milk equivalent basis).
As the largest single dairy producing country, India’s output continues to grow strongly in the 3-4 percent range, largely in response to internal demand growth and sustained by increasing productivity. India accounts for over half the total milk output of Asia. Given recent high international prices, it has started to enter certain export markets.
But whereas Africa accounts for less than 5 percent of global milk output, and milk production continues to grow at a slow pace in most countries. The major producing countries are Egypt, Kenya, South Africa, and the Sudan. Egypt is facing production constraints due to an import ban on dairy cattle from countries affected by BSE and EBL (unexotic bovine leukosis). Milk output was affected by drought in late 2005 and early 2006. Egypt 66.9 66.1 (-)1.20
Tab. 5.3.1 Egypt’s share in India’s world trade of milk.
COUNTRY 2006-07 SHARE % 2007-08 SHARE % GROWTH
Dairy Products Export to Egypt 5,646.29 8.35 5,514.07 12.69 -4.34
India’s total export of Dairy’s product to world 67,668.26 – 43,457.61 – -35.77
Source: APEDA
Fig:5.3.1-. Share of Egypt for Indian export of Milk Products against to world
Source: APEDA

Fig.:5.3.2- Trend of Export of milk products(in quantity MT) to Egypt from 2006 to 2008

Source: APEDA

5.4 Trading Partner of Egypt

The revolutionary regime shifted Egypt not only politically but also economically toward the Soviet Union and Eastern Europe. Prior to 1952, Egypt’s major trading partner was Britain. By 1970 the share of Egypt’s exports to the Soviet Union and Eastern Europe had risen to about 60 percent of the total, climbing from about 20 percent in 1955. The share of imports from the Soviet Union and Eastern Europe during the same period increased from 7 percent to about 33 percent..
The market share of domestically produced milk fell in 1999 and the first half of 2000. Market share of local sales of milk was 93% throughout the years 1996 to 1998. It then decreased in 1999 and 2000 to 90%. The market share lost by domestic producers of fresh milk was at the same time gained by imports of milk powder .
The United States emerged as Egypt’s largest source of imports, in part because its aid to Egypt was conditioned on Egypt’s purchasing American goods and services. Between 1982 and 1986, Egypt obtained from the United States an average of 16 percent of its total imports. On the average, OECD nations supplied 46 percent of imports and purchased 55 percent of Egypt’s exports by 1986.
Put differently, Egyptian foreign trade was concentrated with the industrialized countries. Third World and Arab nations were minor trading partners. Some analysts argued, however, that if Egypt wished to attract foreign industrial investment it would need to obtain new markets, especially in the Arab region. The Arab market had been closed to Egypt because of Egypt’s 1979 peace treaty with Israel, but the reentry of Egypt into the Arab fold in the mid-1980s might further trade with the Arab nations.

The main Trading Partners of Egypt are:
USA European union
New Zealand Australia
China Saudi Arabia
Shrilanka India
Germany Canada
U.K. Italy

Tab.5.4.1 Egypt’s principal five export destinations
S.N. In FY 2006-07 In Q4 of FY 2006-07
1. India India
2. Italy USA
3. USA Italy
4. Spain Spain
5. France UK
India’s Market share 10.45% 11.33%
Source: www.tradeindia.com
Tab.5.4.2Egypt’s principal five import sources
S.N. In FY 2006-07 In Q4 of FY 2006-07
2. Saudi Arabia Saudi Arabia
3. China Germany
4. Germany China
5. Kuwait Kuwait
India’s Rank 13 10
Source: www.tradeindia.com
The Egyptian market is gradually opening up especially after signing an agreement with the European Free Trade Association (EFTA) in 2006, and a free trade treaty with the United States. Its three primary partners for export are: the European Union which represents more than a third of trade, United States (10%) and Syria (5.7%). Its three primary partners for import are: the European Union (more than 12%), Unites States (12%) and China (10%). Egypt mainly exports mineral fuels and oils, cotton, iron and steel. It mainly imports consumer electronic goods and capital goods, nuclear reactors and nuclear-powered boilers, cereals, food products and chemical products. Import volume has doubled. It is double the exports which contributed to the reduction of the trade balance of this country.


6. India-Egypt past Trade Relations

A very good relationship is being established between India and Egypt both in economic and political spheres from the very beginning during the non-aligned movement, which is considered as the land mark of the freedom struggle of India. The year 2002 was considered as year of India in Egypt by the Egyptian ministry of foreign trade for further enhancing the bilateral relationship. The agreements between the two countries are based upon the most favored nation clause.

Tab. 6.1 India and Egypt’s past trade relations
(million US$)

Financial Total Exports % change Total Imports %
change Total % change
Year to Egypt from Egypt Trade
2002 – 03 261.59 466.03 727.62
2003 – 04 155.11 -41% 453.19 -3% 608.30 -16%
2004 – 05 246.40 +59% 438.32 -3% 684.72 +13%
2005 – 06 363.57 +48% 930.04 +112% 1,293.61 +89%
2006 – 07 427.43 +18% 1,534.28 +65% 1,961.71 +52%
2007 – 08 1,209.22 +183% 2,171.38 +41.5% 3,380.60 +72%
2008 – 09
07/08 to11/08 650.36 489.77 1,140.13
Source: Department of Commerce, GOI

According to the department of commerce and Industry in India, Indian exports to Egypt have touched $ 423.68 million in 2004 which is up by 15.29% and the imports from Egypt have reached $ 137.27 million in the same year which is up by 39.77%.

Tab. 6.2 Top 10 Imports from India (million US$)
In FY 2006-07 In Q4 of FY 2006-07
Commodity Total Value % Growth Commodity Total Value % Growth
Meat, Boneless of Bovine, Frozen 43.66 New Item Rice, Whether or Not Polished 22.06 New Item
Rice, Whether or Not Polished 30.46 2595.57 Meat, Boneless of Bovine, Frozen 13.00 New Item
Other Yarn Single=<50 turn/m, Prim Cond. Not FRS 29.56 225.19 Syn. Staple Fibre of Acryllic Not Card, For Comb. 10.43 New Item Gas Oil (Solar) 17.91 -68.05 Other Yarn Single=<50 turn/m, Prim Cond. Not FRS 7.80 136.36 Leaf, Tobacco not Stemmed Stripped 14.38 -10.12 Power Liquid Dielec. Trans. > 10000 to 22 KV 7.05 New Item
Syn. Staple Fibre of Polyester, Not Card, For Comb. 12.80 258.54 Syn. Staple Fibre of Polyester Not Card, For Comb. 4.71 256.81
Syn. Staple Fibre of Acryllic, Not Card, For Comb.
11.07 New Item Single Yarn of Unconb. Fibre>=85%COT>=714.29DC NFRS
4.34 985.00
Polystyrene, Other than Expansible in Primary Form 10.96 17.21 Polystyrene, Other than Expansible in Prim. Form 4.10 157.86
Motor Vech. SPARk-ign.pist./eng.1000cC 9.94 -9.47 Leaf, Tobacco not Stemmed Stripped 3.87 65.38
Cathodes, Sect. of Cathods, of Refined Copper 8.50 New Item New Pneumatic Tyres of Rubber for Bus and Lorrie 2.66 61.21

Source: Department of Commerce, GOI

Tab. 6.3 Top 10 Exports to India (million US$)

In FY 2006-07 In Q4 of FY 2006-07
Commodity Total Value % Growth Commodity Total Value % Growth
Petroleum, Partially Refired Including Distilled Oil 833.65 83.28 Petroleum, Partially Refired Incl. Distilled Oil 259.61 39.50
Petroleum, Crude 544.35 41.55 Petroleum, Crude 157.41 17.46
Natural Gas, Liquefied 72.04 144.36 Other Raw Cotton, Not Mixed 12.86 64.03
Other Raw Cotton, not Mixed 45.55 44.69 Koke of Coal, Lignite or of Peat 5.87 New Item
Koke of Coal, Lignite or of Peat 5.85 New Item Wood Charcoal Whether, Agglomerated or not 5.04 New Item
Wood Charcoal Whether, Agglomerated or not 5.02 New Item Raw Cotton, Not Mixed Giza 70 0.99 5.31
Raw Cotton, not Mixed Giza 70 3.63 -9.02 Other Tanning Leather of Bovine or Equine 0.97 203.12
Buck Wheat 1.90 New Item Other Linen, Bed, Table, Tolit of Cotton 0.97 New Item
Other Tanning Leather of Bovine or Equine 1.77 160.29 Articles of Asphalt in Rolls 0.63 New Item
Marble, Travertine, Crude 1.65 -54.67 Marble, Travertine, Crude 0.49 68.96
Source: Department of Commerce, GOI

The main exportable items from India were Iron and steel, Jute yarn, Plastic and rubber, Chemicals and engineering goods.
The main importable items were petroleum products, raw cotton, rock phosphate, Cooking coal and marble.

Tab. 6.4 The Top Five Items of Import from India to Egypt

In FY 2006-07 In Q4 of FY 2006-07
Meat, Boneless of Bovine, Frozen Rice, Whether or Not Polished
Rice, Whether or Not Polished Meat, Boneless of Bovine, Frozen
Other Yarn Single=<50 turn/m Primary Condition not FRS Syn. Staple Fibre of Acryllic, not Card. for Comb. Gas Oil (Solar) Other Yarn Single=<50 turn/m Primary Condition not FRS Leaf Tobacco, not Stemmed Stripped Power Liquid Dielec. Trans. > 10000 to 22 KV
Source: Department of Commerce, GOI

Tab. 6.5 The Top Five Items of Export to India from Egypt

In FY 2006-07 In Q4 of FY 2006-07
Petroleum, Partially Refired Including Distilled Oil Petroleum, Partially Refired Including Distilled Oil
Petroleum, Crude Petroleum, Crude
Natural Gas, Liquefied Other raw Cotton, not mixed
Other raw Cotton, not mixed Koke of Coal, Lignite or of Peat
Koke of Coal, Lignite or of Peat Wood Charcoal whether, Agglomerated or not
Source: Department of Commerce, GOI

Current bilateral trade between Egypt and India is approximately US$3 billion annually.
Egypt and India are currently in discussion for a free trade agreement between the two nations. India, seen globally as the technology hub, is hoping that an improved role in Egypt could lead to more access to Africa.
2008 Egyptian investment in India was worth some 750 million dollars, according to the Egyptian ambassador.

India has emerged as one of Egypt’s largest trade partners. Nearly 95% of Egypt’s exports to India comprise oil and gas. Coking coal, raw cotton, rock phosphate, and marble constitute the other import items. The principal Indian export items include frozen meat, cotton yarn and synthetic yarn, rice, diesel, tobacco, electrical machinery, soybean, chemicals, automobiles and components, sugar, pharmaceuticals and tea.


7.1 Indian Plans and Projects In Egypt
7.2 India-Egypt Cultural Relations
7.3 S&T and Agriculture
7.4 Indian Community/Tourists

7. Bilateral Economic and Commercial Relations

Egypt has traditionally been one of India’s most important trading partners in the African continent. The India-Egypt Bilateral Trade Agreement has been in operation since March 1978 and is based on the Most Favoured Nation clause. India-Egypt trade figures since 2004-05 are given below:
Tab. 7.1 India’s total export/Import to/from Egypt
Financial Total Exports Total Imports Total
Year to Egypt from Egypt Trade
July-June US $ Million US $ Million US $ Million
2004 – 05 246.40 438.32 684.72
2005 – 06 363.57 930.04 1,293.61
2006 – 07 427.43 1,534.28 1,961.71
2007 – 08 1,209.22 2,171.38 3,380.60
Source: CAPMAS of Egypt

Fig.7.2 India’s Export/Import with Egypt

Source: CAPMAS of Egypt

7.1 Indian Plans and Projects In Egypt

7.1.1. Indian Plans:

1. India has emerged as one of Egypt’s largest trade partners. Nearly 95% of Egypt’s exports to India comprise oil and gas. Coking coal, raw cotton, rock phosphate, and marble constitute the other import items. The principal Indian export items include frozen meat, cotton yarn and synthetic yarn, rice, diesel, tobacco, electrical machinery, soybean, chemicals, automobiles and components, sugar, pharmaceuticals and tea.

2. Exclusive Indian exhibitions were organised in Cairo in April 1998 and September 2000. The Egyptian Ministry of Foreign Trade declared 2002 as Year of India in Egypt. Indian companies have been regular participants in the annual Cairo International Trade Fairs. Under the aegis of ITPO, 40 Indian companies participated in the Cairo International Fair in March 2008. The Engineering Export Promotion Council (EEPC) of India participated in the MACTECH Fair in Cairo in November 2006 with its own pavilion (INDEE). The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) organised an exhibition in Cairo in February 2007. CHEMEXCIL (Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council of India) delegations visited Egypt in March, September and December 2006. Delegations from the Chemicals & Allied Products Export Promotion Council (CAPEXIL) visited Egypt in December 2006, February 2007 and November/December 2008. A FICCI delegation visited Egypt in June 2007 to participate in SMETECH (exhibition for small/medium enterprises), and a delegation from the Federation of Indian Export Organizations visited Egypt in September 2007. A delegation from the Indian Institute of Entrepreneurship, Guwahati visited Egypt in February 2008. Several delegations from the Tea Board of India have also visited Egypt. A Tea-tasting-cum-Business Meet was organized by the Tea Board of India in Cairo on 20 May 2008 during the visit of Minister of State for Commerce & Power Mr. Jairam Ramesh. Indian companies participated in the EGYTEX Fair in Cairo on 16-18 November 2008.

3. CII and the Embassy organized the ‘Made in India Show’ in Cairo on 20-23 November 2007. 115 Indian companies participated in the exhibition. Coinciding with the Show, a 20-member CEOs delegation also visited Cairo and called on Minister for Finance, Dr. Boutros Ghali; Minister for Agriculture & Land Reclamation Amin Abaza; and Minister for Housing, Utilities& Urban Communities, Ahmed Amin El-Maghraby. Representatives of Indian companies had discussions with the Egyptian Businessmen’s Association, the Federation of Egyptian Industries (FEI) and the Egypt-India Joint Business Group. CII and FEI signed a MoU on cooperation. A seminar -“Business Opportunities in India and Egypt”- was also held during the Show.

4. IIM-Ahemdabad has joined hands with Future Generation Foundation (FGF), a NGO funded by private sector companies in Egypt, to undertake an Accelerated Management Development Programme in Egypt, the first of which was held in May 2005 and the second in November 2005. A 47-member delegation from the Indian Institute of Public Administration visited Egypt in January 2009 on a study tour. In September 2006, the Social Fund for Development of Egypt signed a MOU with the National Research Development Corporation for setting up technology demonstration centres in Egypt.

7.1.2. Indian Projects in Egypt:

1. Oil and Gas

Minister of Petroleum & Natural Gas, Mr. Murli Deora led a delegation to Egypt in April 2007. Mr. Deora called on President and also met with the Egyptian Minister for Trade and Industry. He held discussions with Minister for Petroleum of Egypt, Eng. Sameh Fahmy. Gas Authority of India Limited (GAIL) has equity and management stake in two gas distribution ventures in Fayoum and Cairo as well as in Natgas. OVL and its partner IPR Red Sea Inc. have announced two oil field discoveries in the North Ramadan Concession in the Gulf of Suez, the contract for which dates to August 2005. On 9 March 2008, the Gujarat State Petroleum Corporation Ltd (GSPC) signed a Concession Agreement for the North Hap’y and South Diyur oil and gas exploration blocks. Indian Oil Corp. had expressed interest in working with the Egyptian General Petroleum Corporation to build an oil refinery in Egypt and entrusted the pre-feasibility study to Engineers India Limited.

2. Communications and IT

A delegation of IT companies from Egypt visited Bangalore and Hyderabad in July 2006. During the visit of Mr. Tarek Kamel, Minister of Communications and Information Technology to India in November 2006, a MoU on CIT cooperation was signed at the governmental level. In addition, three MoUs were concluded at the industry level. The first meeting of the Indo-Egyptian Joint Working Group on ICT was held in Cairo in January 2008. TRAI signed a MoU with the Egyptian Telecommunications Regulatory Authority in March 2007 for cooperation in the telecom regulatory environment. TCIL and the Egyptian Ministry of Communication & IT signed a MoU in December 2007 concerning the implementation of the Pan African e-network project. The Executive Board of NASSCOM (India’s IT industry association) visited Cairo in December 2006 and was received by Prime Minister Nazif and Mr. Tarek Kamal. Egyptian delegations attended the NASSCOM-organized India Leadership Forums in February 2008 and February 2009. Satyam and WIPRO have established global solutions centers in Cairo.

3. Indian Technical and Economic Cooperation (ITEC) Programme

Over 195 Egyptian candidates have been to India under the ITEC programme since 1986. 15 Egyptian diplomats have also attended courses conducted by the Foreign Service Institute of India.

4. Other various projects

The Bilateral Investment Protection Agreement between India and Egypt entered into force in November 2000. The Vice Chairman of the General Authority for Investments and Free Zones of Egypt led a delegation to India April 2007. A GAFI delegation that visited India in April 2008 on an investment promotion campaign, participated in FICCI’s India-Arab Investment Conclave. According to the Egyptian sources, India is the 12th largest foreign investor in Egypt with a total investment of approximately US$ 750 million in close to 40 projects. Alexandria Carbon Black (ACB) set up by Grasim India Limited with TRENCO and ATC as Egyptian partners has been the leading successful joint venture between Indian and Egyptian companies. A new acrylic fibre plant – Alexandria Fibre Co. was subsequently set up by the Aditya Birla Group with an initial investment of $ 60 million. Other projects include the JV between Asian Paints and SCIB Chemical, (Orascom Group); in October 2004, HDFC facilitated the setting up of EHDC (Egyptian Housing Development Company) by acquiring 10% equity and providing technical as well as management assistance; the Oberoi group has been managing a hotel and Nile cruises; ESSEL of India has set up a JV for manufacturing laminated tooth paste tubes for Proctor and Gamble in Egypt; Dabur India Ltd. has established a 100% owned facility for the production of its cosmetics line; Niletex, a 100% Indian company manufactures PVC water-storage tanks; M/s. Auto Tech Engineering, another 100% Indian company, manufactures auto valves; Kirloskar Brothers assemble diesel engines and irrigation pump sets in Egypt; Ranbaxy has an Egyptian subsidiary for manufacturing pharmaceutical formulations; in collaboration with the Engineering Automotive Manufacturing Company of Egypt, Ashok Leyland is assembling and selling mini buses in Egypt; in January 2008, Mahindra & Mahindra launched their ‘Scorpio’ SUV in the Egyptian market collaboration with the Bavarian Auto Trading Company; TATA Motors have an office in Egypt and, in 2007, they launched their entire range of vehicles in the Egyptian market; Marico, an Indian consumer goods company has acquired two hair care brands from Egypt’s Ready Group; SBI has a Representative Office in Cairo. In March 2007, the Sanmar Group completed acquisition of a unit of Trust Chemicals of Egypt. In June 2007, South Asian Petrochem Ltd. entered into a shareholders agreement with Echem of Egypt to set up a US$ 250 million PET resin plant in Egypt. In November 2008, Kernex Microsystems were awarded a US$ 17.5 million contract by the Egyptian National Railways for modernization of 136 level crossings. In December 2008, KEC International Ltd. bagged an order valued at US$ 135 million awarded by the Egyptian Electricity Transmission Company for a turnkey project for the design, supply and construction of 196 km long 500 kV double circuit line. The project is funded by the European Investment Bank.

7.2. India-Egypt Cultural Relations

The Maulana Azad Centre for Indian Culture, which was set up in 1982, promotes bilateral cultural cooperation and is also responsible for implementation of the Cultural Exchange Programme (CEP). An Egyptian Cultural Week was held in New Delhi in October 2007 and the reciprocal “Days of Indian Culture” in Egypt was held on 10-17 November, 2008. The week-long festival, comprising performances by Indian music and dance troupes, an exhibition of paintings by younger Indian artists, an exhibition of photographs by Benoy Behl and screening of Indian films, was inaugurated by Dr. Farouk Hosni, Minister of Culture of Egypt. Under the aegis of the current bilateral CEP, exchange of visits of dance troupes and scholars has taken place regularly. The celebrated Indian author, Mr. Amitav Ghosh participated in the Annual Conference of the Arab Writers’ Union in Cairo in April 2008. As part of the Mission’s activities to celebrate Independence Day and to mark the 60th anniversary of the establishment of diplomatic relations between India and Egypt, an exhibition titled “India-Egypt: A Photographic Retrospective” was held in Cairo in August 2008. At the request of the Egyptian Ministry of Culture, a three-member team from ASI visited Cairo in October/November 2008 for a preliminary study on the restoration of the Baron Palace. Egypt was represented at the Surajkund Crafts Mela in February 2009 as a partner country.

7.3 S&T and Agriculture

ICAR and the Agricultural Research Center of the Ministry of Agriculture & Land Reclamation of Egypt signed an MoU for cooperation in the field of agricultural research in March 1998. An Agreement on cooperation in science and technology was signed in October 1995. Cooperation in agriculture and S&T is implemented through biennial Executive Programmes.

7.4 Indian Community/Tourists

At present, the Indian community in Egypt comprises about 700 families, most of whom are concentrated in Cairo. A smaller number of families reside in Alexandria and Port Said. The Indian community is a cohesive group, consisting largely of professionals, and is represented through the Indian Community Association in Egypt (ICAE).

The third meeting of the Joint Working Group on Tourism Cooperation was held in New Delhi in April 2007. About 82,000 Indian tourists visited Egypt in 2007 as against 61, 000 in 2006. Indian passport holders visiting Egypt require a pre-arrival visa. Egypt Air operates three flights a week on the Cairo-Mumbai-Kuala Lumpur sector. No Indian carrier is operating between Egypt and India.


8. Current Scenario

Trade between India and Egypt had tripled in the last 4 years reaching about $3.5 million in 2007. Egypt has managed to diversify its trade to cover a wide range of goods and thus there would be room for further expansion. Indian direct investments in Egypt stood at around $800 million in more than 200 Egyptian companies.
India and Egypt have decided to intensify trade relations, especially in Dairy industry during Egyptian minister of state’s visit for administrative development to the country from last year.
This visit comes in the context of Egypt’s commitment to consolidate its bilateral relations with India.
Egyptian minister of communications and information technology Tarek Kamel had also recently visited the country to boost ties in information technology.
The earlier to the country will revolve around India’s IT expertise. The discussions will be to gain experience from India’s knowledge in e-governance. .
Such IT exchanges will enable India to use Egypt as a gateway to not only the Arab world but all to the Mediterranean countries and will open doors for Egypt to enter South Asian market from India.
Egypt and India are currently in discussion for a free trade agreement between the two nations. India, seen globally as the technology hub, is hoping that an improved role in Egypt could lead to more access to Africa.
Egypt and India have already agreed to remove visa restrictions for citizens traveling to each nation, with effect from last year.
The governments of both countries are trying to make an agreement that would allow banks in each nation to open branches in the other, thus relieving much of the stress for citizens traveling to and from each country.
Egypt urged India to develop a strategic partnership between the two countries with a view to boost bilateral trade and investments covering important fields like ICT, energy and industry
Trade volume between the two countries is currently $1.5 billion. And it is hoped that by 2010, India and Egypt should achieve $5 billion trade target which should further go up to $10 billion by 2014.


9.1 Data Analysis
9.2 SWOT Analysis

9. Analysis

9.1 Data Analysis

As shown in Table no. 5.1.1 the export of Indian milk products(in qt. MT) to Egypt were 2426.18MT in year 2006 and increase to 6784.19Mt in year 2007 then it come down to 5387.38MT in year 2008.
The table 5.1.1 also shows that Egypt was the second largest buyer of milk products from India having purchase of Rs. 5514.07 lakh.
The decrease in year 2008 is mainly due to economy slow down, and some other reasons also played role like strong impact of US market for Egyptian milk product’s buyers, and Egyptian government’s efforts to ban the import of milk powder.

India’s total export of milk products to Egypt is 13% and the remaining 87% is to the world.(as shown in figure5.3.1)
The India also have 10.45% share in Egypt’s principle five export destinations where in its principle import destinations, India’s rank was 13th in year 2006-07(as shown in table 5.4.1 and table 5.4.2)

9.2 SWOT Analysis

The Substantial growth of Dairy Industry starts from 1970s onwards. India emerged as world leader in milk production in 2001 achieving 84 million tons. And the Milk production estimated at 88 million tons in 2002-03.
The government introduces various schemes to sustain the upward trend.
How ever we may understand the future market in world trade of Indian dairy product and growth as well, for the same with SWOT analysis.

9.2.1 Strength

• Past Experience strengths in the field.
• Large area under Production
• Major share in world production, as India is largest producer of dairy product followed by U.S.
• Technology available to achieve the highest productivity in the world.
• Technology to produce good quality dairy products.
• Concentration of milk productivity in clusters facilitating development of infrastructure, marketing and adoption of technology.
• Lowest/cheap labour cost available.
• Largest employment provider.

9.2.2 Weakness

• Obsolete Machinery and Technology used.
• Lack of knowledge how to produce value added products.
• Non coordination among exporters to make use of the monopolistic situation.
• Lack of co-ordinate research.
• Not good impression of Indian traditional milk products in foreign market.
• Production is high but, there is large consumption also within the country.
• Lack of awareness regarding quality norms, standards, rules and regulations.
• Lack of proper cold chains and warehousing.
• Lack of proper and efficient testing labs available.

9.2.3 Opportunities
• Demand and consumption of milk powder in Egypt.
• Development of less expensive training system.
• Vast scope for innovation and improvement.
• Reduction in export subsidies on food products in developing countries will make Indian processed food more competitive.
• Integration of production, processing, marketing by creating the right infrastructure policy.
• There will be a higher price realization, which will help in improving the standards of living farmers/producers.
• Improvement of size, colour and packing.
• Increase in the size of end user Industry

9.2.4 Threats

• Growing acceptance of some of the substitutes in the end user Industry.
• Ever increasing share of US exports in the higher end of the Market.
• Foreign collaborations of US manufacturers which gets there product ready for acceptance abroad.
• Recession Causing Milk Industry to Suffer.
• Decreasing ground water resources and drought, affecting the health of country’s cattle.
• Fluctuation in international price.
• The Egyptian government may ban the import of powder in future.
• High tariffs on food products in most of the countries.
• Various import and health regulations In importing country.
• Many other competitor countries


10.1 Findings 10.2 Suggestions

10.1 Findings

? Milk production is one of the most remunerative agriculture enterprises in India.
? Indian export of Dairy products in 2007-2008 is usd $ 43,457.61 million and there is decline of 35.8% in export of milk products.
? There is high demand and consumption of milk products in Egypt.
? India’s exports to Egypt during 2007-08 stood at 1,209.22 million dollars and imports from Egypt stood at 2,171.38 million dollars.
? Egypt ranks as the 2nd largest overall importer of dairy products from last two years, leaded by UAE
? Despite the economic slowdown, trade between India and Egypt has increased by 72 per cent last year (2007-2008),
? But however, the export of milk products from India has decreased 10 %.

10.2 Suggestions

• The Indian companies should expand their market worldwide.
• The government policies should be more liberal and should provide more incentives and assistance in the area of exports.
• Government should arrange proper cold chains and warehousing as well as testing labs.
• There should awareness regarding the quality, standards and rules and regulations of various markets.
• Focus should be given on the production of export quality dairy products.
• To overcome the competition in existing market Indian companies must look at the following factors.
Location: The right location for well-developed infrastructure especially power and access to raw material and labor
Work culture: Traditionally consider an intangible indulgence inculcating the right work to provide the cutting edge in terms of quality and productivity is now coming into its own in the managerial mind set. New units have the advantage of being able to promote a suitable work ethnic from the very beginning.
Commercial skill: Given the high content of raw material (which is milk based) in the over all product cost, the commercial judgment in timing and selection of raw material is crucial.
Innovation: Innovation is most important factors for the in Indian Industry. Industry should be innovative. Because this factor increase to growth.


11. Conclusion

I would like to conclude by saying that though India is the largest producer of dairy products but then also it exports a lot of dairy products to “Egypt”.
I would also like to say that export of dairy products should be allowed as this will give the foreign consumer a good quality products and this can give a moral to Indian manufacturer to improve the quality of products.


12.1 Bibliography
12.2 Webliography

12.1 References

12.1 Bibliography
12.1.1 Books References:
? Technology of Indian Milk Products by R P Aneja,
? Economics of Milk Industry in India by V.k. Agarwal
? A book on Milk and Dairy Products in India – Production, Consumption and Exports, by Infolitics
? Indian Industry And Environment by Naveen Kumar Agarwal
? Anchoring Reform with a US Egypt Free Trade – by Ahmed Galal, Robert Z Lawrence
? International Financial Statistics Yearbook by International Monetary Fund
? Francis Cherunilm, “International Business”, Third Edition, Prentice Hall of India Pvt. Ltd.
? Paras Ram, “Export Where, How”, 2007-08, Anupam Publishers
? Rakesh Mohn Johi , “International Marketing” , Oxford

12.1.2Journals and Magazines:
? “The Economic Times”, October 26, ’02
? “Times of India”, article on “Dairy owners”, 24 Feb 2009
? “Eximtimes”, article on “India doubled dairy production”, Jan 2005
? “The Hindu”, article on “Milk production to get a boost”, 19 Jan 2009
? “The Economic times”, article on “India’s milk products exports rise by Rs 84 cr”, 4 Sep 2002,
? “Food Outlook”, article on “Milk Product Prices”, December 2004
? “DNA, Daily News Analysis”, article on “India: ‘Dairy, the last resort in slump’
? “Webindia” article on “Jharkhand milk production on decline”
? The Library of Congress Country Studies; CIA World Factbook
? “Panapress”, India and Egypt discuss Free Trade Agreements, Tuesday 15 April 2008
? Prem Kumar, “ Export Management ”, 1999, Anmol publishing house
? Acharya Jain, “ Export Import procedures and documentation” 2005, Himalaya Publishing House
? Rajan Saxena, “ Marketing Management ”, 1999, Tata McgrawHills publications.
? Francis Cherunillam, “ International Business ”, 2003, Wheeler publications

12.2. Webliography:
http://www.aarkstore.com/report/report.asp?ReportId=847 (worked on 13th
http://www.thedailynewsegypt.com/Section.aspx?SectionID=9 (worked on 15th
http://www.indiainbusiness.nic.in/know-india/know-india.htm (worked on 15th April,09)
http://www.financialexpress.com/ (worked on 20th April,09)
http://www.nddb.org/hindi/index.html(worked on 20th April,09)
http://www.apeda.com/apedawebsite/index.asp (worked on 21st April,09)
http://www.hinduonnet.com/thehindu/hindu.htm (worked on 22nd April,09)
http://countrystudies.us/egypt/(worked on 23rd April,09)
http://www.indianmilkproducts.com/index.html (worked on 23rd April,09)
http://www.economictimes.com/ (worked on 24th April,09)
http://www.indiadairy.com/help.html (worked on 25th April,09)