October 2, 2007

India lifts milk powder export ban

The government has automatically lifted the ban on milk powder exports after the embargo has expired on September 30.

Department of Animal Husbandry and Dairy Development Joint Secretary S Rawla said the ban has not been extended beyond September 30, thus, it has been naturally lifted.

She said the government took the decision after reviewing the availability of milk powder and milk prices in the country.

When asked about apprehensions by consumer activists and industry body CII, which favoured continuance of the ban, Rawla said there are other measures under the Milk and Milk Products Order (MMPO) to check the prices if they rise again on the back of permission for exports.

She noted that there was abundant availability of milk powder in the country at the moment and there was no reason for concern.

The move should stimulate milk powder producers as the prices of the commodity has fallen significantly after the ban was imposed in February to contain inflation. The manufacturers had to cut utilisation of their capacity due to fall in prices.

India produces about 100 million tonnes of milk annually out of which only six percent is used for producing milk powder. Milk powder export stood at 50,510 tonnes in 2005-06.

Consumer activist Bejon Misra said removal of ban and allowing exports is bound to cause shortage of milk during the upcoming long festival season starting with Dussehra, Diwali and Eid and prices can escalate once again.