New Delhi: India, the world's largest milk producer, is likely to import skimmed milk powder (SMP) in the coming weeks to contain price rise and shortage of the product in the domestic market.
"The National Dairy Development Board has been advised to
work out a contingency plan to import SMP under the Tariff
Rate Quota (TRQ) if the situation so warrants in the coming
weeks," Minister of State for Agriculture K V Thomas said in a
written reply in the Lok Sabha today.
Milk production at national level is by and large
sufficient to meet the domestic consumption of milk and milk
products. In case of acute shortage, import of milk powder at
five per cent import duty for up to a quantity of 10,000
tonnes under TRQ is permitted to ensure supply of the product,
he said.
Admitting that the domestic price of SMP is higher than
the international market, the minister said that the rise in
price is only a "seasonal development".
Prices of milk powder in the country generally tends to
increase during summer as the production and procurement of
milk goes down due to heat stress of milch animals. In
Oceania, Western Europe and the US, SMP prices depend on the
cost of milk production and export subsidy provided by the
respective governments, he explained.
The price of milk powder in India is ruling at Rs 140 a
kg in July, compared with Rs 97 a kg in the US and Oceania and
Rs 114 a kg in Western Europe, he said, adding that lower
production and procurement effect the cost of production and
also the sale price of milk power.
"Increased demand coupled with lower milk powder
production during summer season is weighing on prices.
However, there is no shortage of milk to produce SMP in the
country and there is no necessity to import the product,"
according to Delhi-based diary expert R S Khanna.
Milk production stood at 10.48 crore tonnes during
2007-08.
Bureau Report
First Published: Tuesday, July 28, 2009, 17:54