Ban on milk powder export expires

NEW DELHI: The ban on milk powder exports has expired as the government has earlier taken a decision against extending the ban beyond September 30.

"We have not extended the ban beyond September 30, 2007. This means it has naturally been lifted," Department of Animal Husbandry and Dairy Development Joint Secretary S Rawla told PTI.

She said the government took the decision after reviewing the availability of milk powder and milk prices in the country.

When asked about apprehensions by consumer activists and industry body CII, which favoured continuance of the ban, Rawla said there are other measures under the Milk and Milk Products Order (MMPO) to check the prices if they rise again on the back of permission for exports.

She noted that there was abundant availability of milk powder in the country at the moment and there was no reason for concern.

The move should enthuse milk powder producers as the prices of the commodity has fallen significantly after the ban was imposed in February to contain inflation. The manufacturers had to cut utilisation of their capacity due to fall in prices.

India produces about 100 million tons of milk annually out of which only six per cent is used for producing milk powder. Milk powder export stood at 50,510 tonnes in 2005-06.

"Removal of ban and allowing exports freely is bound to cause shortage of milk during the upcoming long festival season starting with Dussehra, Diwali and Eid. Prices can escalate once again," consumer activist Bejon Misra said.