Dairy cooperatives in the country have sought a 20% export incentive for milk products, as there are ample stocks amid drop in demand from bulk consumers.

This will ensure better returns for dairy farmers, they said. At current global rates of SMP this subsidy will amount to Rs 400 Crores for 100000 MT of SMP export. Also read 500 crores export subsidy for SMP could bring 270 million USD and 120 million smiles

There is demand for skimmed milk powder (SMP) and white butter from Nepal, Bangladesh, the UAE, Egypt and Singapore, said RS Sodhi, MD at Gujarat Co-operative Milk Marketing Federation Ltd, popularly known as Amul.

“We have asked the government to give a 20% incentive on export of milk products to support the sector. Demand for milk products have dropped by 10% to 12% from the bulk consumers like hotels, restaurants, wedding caterers etc. This has also led to a drop in SMP prices by 40% to Rs 180/kg in the past four months. Also read Amul approached government to get 160 Crore export subsidy for clearing SMP stocks

Dairy cooperatives in the country have a stock of more than 200,000 tonnes of SMP. This stock is used for preparing liquid milk in the summer when supplies are short . Dairies could easily export 75,000 tonnes of SMP if an export subsidy was given, thereby firming domestic prices, said Ranjeetsinh Deshmukh, chairman at Mahanand Dairy.

“Due to coronavirus, SMP and white butter stocks are in excess, thereby depressing prices. The cooperatives are giving Rs 25 per litre while the private sector is giving Rs 20 a litre . This price is compared to the price of Rs 32 a litre prior to the lockdown,” said Deshmukh.Also read Is price subsidy the only option to support dairy farmers in Maharashtra ?

India is the leading milk producer in the world with production close to 146.31 million tonnes. In 2019-20 , India exported 51,421.85 tonnes of milk products worth Rs 1,341.03 crore.

As shared in The Economic Times