Dairy industry hoping for revival of milk product exports | SupportBiz

Policy Notes

Dairy industry hoping for revival of milk product exports


Dairy farmers across the country are hoping, the new budget will allow the export of casein.

After a three-year shortage in milk production, the New Year has seen a surplus supply in milk. This surplus has adversely affected revenues for dairy farmers, who are hoping the government will help alleviate the pressure by allowing casein exports.

Casein is used in the manufacturing of protein supplements and health drinks.  It takes 33kg of liquid milk for the production of one kg of casein. Only surplus milk is used in the production of casein.

RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF) said, “Owing to a good procurement price and marketing, we have seen an all-time rise in milk procurement this flush season.”

The milk product makers are facing huge problems due to the surplus. Smaller factories have either reduced procurement of milk by 50 percent or have shut down production completely, said Kuldeep Saluja, managing director of Delhi-based Sterling Agro.

India exported 70,000 tonnes of milk powder, casein and casein products until Feb 18, 2011 when exports were banned. 

Dairies convert excess milk into powder, but in the past fortnight, powder prices have fallen as well. Skimmed milk powder (SMP) is currently priced at INR160-170 per kg. Experts expect the price to drop further to INR140-150 per kg by April, reported the Economic Times.