CCEA lifts export ban on some milk products

NEW DELHI: Considering surplus availability of milk powder in the country, the government today lifted the export ban on milk products, especially on whole milk powder and dairy whitener, for five months.

"The Cabinet Committee on Economic Affairs ( CCEA) approved lifting the ban on export of whole milk powder (WMP), dairy whitener, infant milk foods and other milk products till March 2013," sources said.

In February 2011, the government had imposed ban on export of all kinds of milk products -- skimmed milk powder (SMP), whole milk powder (WMP), dairy whitener, infant milk foods, casein and casein products -- to boost domestic supply.

The ban was, however, withdrawn only in the case of casein in April and SMP in June of this year.

The export of these items would be reviewed after March 2013, they said.

The CCEA decided to withdraw the export ban on some milk products in view of flush season for milk that started this month, improved supply of milk and milk powder in the country.

The Committee was also convinced by the Agriculture Ministry's view that there is scope for domestic dairy industry to export milk products without any incentives at this point of time because of better global prices.

For instance in Europe, WMP prices rose to USD 3,862 per tonne in September from USD 3,150 per tonne in the same period last year, the Ministry said.

Also, the Ministry explained that the requirement of WMP is not significant in the country as fat content in it is prone to rancidity if stored in cool places, sources added.

Currently, there is a stock of 1.12 lakh tonnes of milk powder in the country. As much as 300 lakh kilos of milk per day were procured in the country in September, while sales were to the tune of only 260 lakh kilos per day.

Inflation in milk on the Consumer Price Indice (CPI) stood at 11.43 per cent last month.