CCEA approves skimmed milk powder exports

Even as milk price inflation is hovering in double digits since the onset of lean season of milk production,the Cabinet Committee of Economic Affairs permitted the export of up to 60,000 tonnes of skimmed milk powder in the next six months

Written by Express News Service | New Delhi | Published: June 2, 2012 1:14 am

Even as milk price inflation is hovering in double digits since the onset of lean season of milk production,the Cabinet Committee of Economic Affairs (CCEA) on Friday permitted the export of up to 60,000 tonnes of skimmed milk powder (SMP) in the next six months.

The move is likely to benefit producers from Maharashtra and Gujarat among other states. The government had recently allowed the export of Casein,a byproduct of milk ,under pressure from Agriculture Minister Sharad Pawar last month. The decision is also likely to help improve the financial situation of the dairy industry,which has been pushing for permitting exports of Casein and SMP.

Even as the ban has been lifted,the food inflation is hovering around 10 per cent while the milk inflation,in particular,is ruling above 15 per cent (in April 2012) as against about three per cent during the corresponding period last year.

In fact,the average procurement price of milk by the milk federations are up by about 15 per cent as compared to last year with average prices of toned milk up by around 14 per cent as against last year.

The CCEA,however,allowed the export of SMP as the Agriculture Ministry pressed for it arguing that the stocks of SMP with the milk federations have almost trebled over last year in the wake of ban of its export last year. According to the figures available with the government,the milk federations across the country had a stock of over 68,000 tonnes of SMP in April as against about 18,000 tonnes last year.

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