KARACHI: Pakistani dairy product manufacturers have sought intervention from provincial and federal authorities against what they call the smuggling of non-compliant dairy products of Iranian origin, saying they could cause an estimated Rs13 billion ($73 million) annual loss to the indigenous industry.
The Iranian origin products being smuggled into Pakistan according to local officials include long life dairy creams, liquid milk, flavoured milk and other products.
“The Irani products being sold in Pakistan are mainly coming through smuggling and an impact assessment shows that this could cause the local dairy sector to suffer Rs13 billion losses per year,” Dr. Shehzad Amin, CEO of the Pakistan Dairy Association (PDA), told Arab News on Thursday, adding that the “non-compliant,” unregulated products were widely available at retail stores in Pakistan despite being of low quality.
An official at the Sindh Food Authority who did not want to be named said action had been initiated against the smuggling of dairy products, but did not specify what measures had been taken. The federal bureau of revenue and the commerce ministry could not be reached for comment. The Iranian embassy in Islamabad did not respond to emailed queries.
The Association has also said Iranian dairy products were being sold in violation of labelling requirements, according to letters by the PDA written to four provincial food authorities as well as the federal commerce ministry and the federal bureau of revenue.
“In addition to causing heavy revenue losses to the national exchequer, this product is clearly a violation of labeling requirements of SRO 237-Ministry of Commerce, applicable quality and nutrition standards of provincial and federal food authorities,” the PDA said in a letter dated last month, referring to a commerce ministry rule.
“Despite legal requirement to check imported processed food products as per Pakistan Standards and existence of Pakistan Standards for the aforementioned Dairy Products, unregulated and noncompliant dairy products are available in market which can be detrimental to health.”
PDA in its letters has also pointed out what it calls design infringement, labelling anomalies, import irregularities, food safety risks and violation of the government’s SRO237 legal framework under which goods are imported or manufactured and which requires products to have 66 percent shelf life from the date of manufacturing as well as stipulates that ingredients and details of products be printed in Urdu and English on the packaging. 
“We have been meeting with the authorities and their response so far is encouraging,” the PDA chief said. “We are asking them to take corrective measures at the borders. We are seeking to ensure compliance of imported dairy products as per applicable standards as being applied on locally regulated dairy products.”
Dairy sector stakeholders also said the unregulated products were against the promotion of fair business practices in the country. 
“Dairy products including dry milk are coming through smuggling in large quantities,” said Shakir Umar Gujjar, president of the Dairy and Cattle Farmers Association (DCFA), “and are certainly impacting the local market.”

"The smuggled dry milk is sold in the local market after mixing with water and is being presented as fresh milk," Gujjar added. "This practice is denting our market share."