CCEA likely to lift export ban on some milk products tomorrow

NEW DELHI: Amid surplus availability of milk powder in the country, the government is likely to decide tomorrow on lifting ban on export of milk products, especially whole milk powder, dairy whitener and infant milk foods.

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The ban was, however, withdrawn only in the case of casein in April and SMP in June of this year.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 Cabinet Committee on Economic Affairs ( CCEA) is scheduled to meet tomorrow. The proposal on removal of export ban of some milk products is on the agenda," sources close to the development said.

The Agriculture Ministry has proposed removal of the export ban on whole milk powder (WMP), dairy whitener, infant milk foods and other milk products with immediate effect in view of flush season for milk that started this month, improved supply of milk and milk powder in the country.

The ministry feels that there may be 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 have risen to USD 3,862 per tonne in September from USD 3,150 per tonne in the same period last year.

Also, the ministry feels 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.