Agriculture Ministry

INDUSTRY


Agriculture Ministry Reviews Milk and Milk Powder Situation Ahead of Peak Season

India has exported 17,000 MT SMP subsequent to reopening of exports in June, 2012 and export orders to the tune of 10,000 – 12,000 MTs per month were anticipated by all leading players in private and cooperative sector.

Secretary, Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, Government of India (DADF) convened a meeting with leading players in cooperative, Government and private sector on 8.11.2012 to review the milk situation in the country and the stock position of skimmed milk powder. The industry has requested the Government to consider increasing the incentive for exports from 5% to 10% under the Vishesh Krishi and Gramin Upaj Yojana to facilitate export of accumulated stock.

In the meeting, most of the cooperative federations reported lower inventories compared to July, 2012. Gujarat Cooperative Milk Marketing Federation and Mother Dairy, Delhi assured help to the Federations to liquidate the stocks of SMP held by cooperatives.

The industry requested for Government intervention in containing the steep increase in price of cattle feed over last one year which has increased the cost of milk production. It was indicated that although import duties on most of the oil cakes used as feed requirements have been waived, steps need to be taken for fodder development and ration balancing to reduce cost of feeding. The Secretary, DADF requested both Private and Cooperatives to step up milk procurement during the flush season by paying remunerative prices to the farmers to encourage milk production to meet the requirements of milk during the lean season and to expand marketing of milk and milk products. The need for processing and value added products of milk was emphasized to take care of the production during peak season.

It was agreed in the meeting to suitably consider the request of casein exporters for issuing export license for 6 months instead of 3 months. The casein manufacturers also assured that this will lead to increase in their requirement of SMP by 5,000 MT for conversion to casein.

With the above measures, it is anticipated that the skimmed milk powder prices and stocks will return to normal levels in coming months. 

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