Government considering banning export of skimmed milk powder

New Delhi: The Central government is considering banning exports of skimmed milk powder (SMP).

The Agriculture Ministry has already sought information from all State co-operative dairy federations on their existing export commitments and stock position of SMP as well as whole milk powder (WMP).

Bulk SMP prices in Delhi are currently ruling at Rs125-126 a kg, against around Rs90 at this time last year. Since 2001-02, prices have doubled to converge towards world levels.

SMP prices in Western Europe are quoting at $3,050-3,200 per tonne free on board, a $950 per tonne jump over last year. The prices have risen mainly due to drought conditions in Australia and lower-than-projected milk volumes in New Zealand, coupled with the phased reduction in farm subsidies by the EU.

Hardening global prices have given a boost to domestic dairies and farmers and during 2005-06, 47,334 tonnes of SMP worth Rs420 crore were exported and another 10,903 tonnes (Rs282 crore) of casein - a milk protein powder concentrate - was exported.

The major SMP/casein exporters include the Delhi-based Sterling Agro Industries, VRS Foods and Mahaan Proteins, Dynamix Dairy Industries at Baramati and Cepham Milk Specialities, Patiala. The co-operative federations in Tamil Nadu (Aavin), Karnataka (Nandini) and Rajasthan (Saras) also exports limited quantities of SMP.

The country annually produces roughly 1.5 lakh tonnes of bulk SMP/WMP, with Amul alone accounting for some 40,000 tonnes.