IN YET another step towards combating inflation, the government has withdrawn export incentives on skimmed milk and other dairy products. Benefits provided under vishesh krishi and gram udyog yojana (VKGUY) and focus market scheme have been withdrawn for export of skimmed milk product, casein (milk protein) and other milk products as well, a public notice put out by the directorate general of foreign trade said. The VKGUY grants duty-free scrips of 5% against exports of identified agro-based products. Under the focus market scheme, exporters are entitled for a transferable duty credit scrip equivalent to 2.5% of the total FOB value, for select products. Incentives have been withdrawn even on exports of consumer packs of milk and value-added products like cheese. Interestingly, global dairy prices are expected to fall in 2008-09 as current high prices are resulting in more production and exports. The wholesale price index of milk rose 1% the previous week. The government removed export incentives for a number of products over the last few weeks including cement and steel. Inflation came down marginally to 7.14% the week ending April 5 from 7.41% the previous week.