Centre may lift ban on export of milk powder

NEW DELHI: Bowing to the demand from milk federations, the Central Government may not extend the ban on export of milk powder that expires on September 30. The ban was enforced in February this year to stem the domestic shortage of skimmed milk powder and to check the rising price of liquid milk.

Since the prices of skimmed milk powder and milk powder had hardened in the international market, they were not being imported, resulting in a decline in the availability of liquid milk and frequent hike in milk prices.

Recently, the Gujarat Cooperative Milk Marketing Federation Limited met Agriculture and Food Minister Sharad Pawar seeking lifting of the ban on import of milk powder.

Their argument was that due to the increase in the cost of cattle feed inputs such as deoiled cake, rice bran oil, maize, jowar etc., they have had to pay up to 25 per cent higher price to their milk producers.

In comparison, the increase in the price of milk and milk products had been “only 16 per cent” compared to vegetables (52 per cent), deoiled cake (46 per cent), groundnut oil (46 per cent) and pulses (18 per cent).

The Federation said the international milk powder and butter oil prices had shot up due to the European Union subsidy to exporters as well as the reduction in milk production in Australia due to successive droughts.

Besides, in their estimate, they had a good opportunity to establish a “foothold” in the international market owing to the rise in the demand for milk and milk products “due to high GDP growth rates” in China, south-east Asia, the Middle East and India’s key neighbouring markets.