Govt attributes rise in milk prices to higher input costs

NEW DELHI: The government today attributed the rise in prices of milk and its products to higher input cost and drought that had affected almost half of the country last year.

"The increase in prices of milk and milk products is due to increase in prices of cattle feed ingredients in last one year and deficient rainfall in many milk producing states during 2009," Minister of State for Agriculture K V Thomas said in a written reply to the Lok Sabha.

Thomas said the rise in price is also due to diversion of substantial quantity of milk for manufacture of casein, a protein, and higher consumption in the rural areas due to rise in disposable income leading to increase in demand.

The government has not banned export of milk and its products, he said adding that the incentives for overseas shipment in the category, however, have been withdrawn since August 2009.

The export incentives were withdrawn under the Vishesh Krishi Gram Udyog Yojna to augment the availability of milk in the domestic market, the minister added.