August 2, 2010

India's milk output up by 3.3% in 2009-10

India's milk production grew by 3.3% in the last fiscal year, according to the Minister of State for Food and Agriculture, KV Thomas.

"Milk production in the country grew by 3.3% to 112 million tonnes in 2009-10 fiscal as compared to 108.4 million tonnes in the previous fiscal," Thomas said.

Throughout the last fiscal, major dairy players like Dwarka Milk, Mother Dairy and Amul have increased milk prices by around INR6 (US$0.13) per litre to ensure that farmers are compensated for rising production costs. The minister said the reduced availability and increase in price of fodder due to drought conditions in 2009 led to the increase in milk prices.

According to the agriculture ministry, during the last fiscal, the National Dairy Development Board (NDDB) had allowed the import of 30,000 tonnes of milk powder and 15,000 tonnes of butter with zero import duty to augment the availability of liquid milk and stabilise the price of milk in the domestic market.

"All state governments have been requested to exempt or reduce VAT on molasses and other cattle feed ingredients used in manufacturing cattle feed to reduce the cost," Thomas added.