New Delhi, Aug 28: Union Agriculture Minister Rajnath Singh today admitted that the country was facing an acute milk shortage and said that India will import skimmed milk powder (SMP) upto 6,000 tonnes to meet the shortfall in current supplies. He said the decision was taken in the light of the recent milk shortage and the demands made by the state milk federations.
"SMP imports will be through NDDB. Its prices have shot up due to shortage in the country. Import will ease the availability to some extent," Singh said during the Editors' Conference here.
Directorate General of Foreign Trade (DGFT) has permitted imports of 6,000 tonnes but the actual imports will be based on the requirement of various dairy federations, the animal husbandry and dairying secretary Binoo Sen said.
She said the shortage is not restricted to the national capital alone and other states too have placed demand for more SMP, including 4,000 tonnes by Rajasthan.
Global crisis of availability of milk was due to the prevailing heat conditions in Europe and drought conditions in Australia which have resulted in hike in prices of milk powder to an alarming 1900 dollars a tonne from 1,200 dollars in May-June.
India has a tariff rate quota of 10,000 tonnes for SMP import at a concessional customs duty of 15 per cent. The minister said present crisis is linked to non-availability of ingredients required for milk production including SMP and white butter with institutions like Gujarat Cooperative Milk Marketing Federation and other state dairy federations (SDFs)
Sen said Mother Dairy in Delhi has a demand for 4,500 tonnes SMP which it sources from various SDFs.
Bureau Report