The NDDB chairman also suggested FM to introduce of a national school milk programme.

The National Dairy Development Board (NDDB) has called upon the Union Finance Minister Nirmala Sitharaman to rationalize direct and indirect taxes on dairy items and reduce the Goods and Services Tax (GST) on 'ghee' and flavoured milk, among other things.

Making his submissions at a meeting convened by the Union Finance Minister for pre-budget consultations with stakeholder groups from agriculture and rural development at New Delhi on Tuesday, NDDB Chairman Dilip Rath also pitched for reduction of GST on breeding outputs, besides a cut in import duty on import of bovine germplasm.

An official NDDB's press release stated on Wednesday that Mr Rath also impressed upon the finance ministry to increase export incentives as well as exempting incomes of dairy farmers and milk producers institutions from income tax.

He said that interest subvention on DIDF scheme should also be enhanced, while launching new dairy development schemes with assistance from the Japan International Cooperation Agency (JICA) and World Bank.

The NDDB chairman also suggested introduction of a national school milk programme.

Mr Rath also urged the Union Finance Minister to "to make NDDB an implementing agency for grid connected solar irrigation pump and biogas/slurry making schemes on cooperative model to help the dairy sector sustain its growth momentum in the coming years."

Union Minister of State for Finance and Corporate Affairs Anurag Thakur and Secretaries from the departments of Finance, Expenditure, Revenue, Agriculture, Cooperation, Farmers Welfare, Rural Development, Fisheries and others were present at the meeting.

Director-General of Indian Council of Agricultural Research, the Chief Economic Advisor, the Chairperson of Central Board of Direct Taxes (CBDT) and Member of NITI Aayog also attended the discussions.