August 29, 2012

As against current availability of 1.12 lakh tonnes, demand for milk powder in India is estimated at 88,000 tonnes during this fiscal.

"The demand projected by major milk federations and Mother Dairy (Delhi) is about 88,000 tonnes for the year 2012-13," Minister of State for Agriculture Charan Das Mahant told in a written reply to the Lok Sabha.

The current stock of milk powder with milk federations, Mother Dairy (Delhi) and National Dairy Development Board (NDDB) is around 1,11,646 tonnes, he added.

The minister said that Agriculture Ministry does not have information on the value of the current stock of milk powder in the country but its prices have not crashed due to lack of adequate demand.

"...the average monthly price of milk powder in Khari Baoli wholesale market, Delhi, for 2012-13 is INR175 (US$3.14) per kilogramme," Mahant added.

The government, in view of adequate availability of milk powder has allowed free export of skimmed milk powder (SMP) through a notification issued on June 8, 2012 and is giving an incentive of 5% for SMP under Vishesh Krishi and Gram Udyog Yojna (VKGUY), he said.

The government had banned SMP exports in February 2011 to contain rise in domestic milk prices. Domestic prices of SMP had declined to INR150 (US$2.7) per kilogramme in May this year as against INR190-200 (US$3.41-3.6) per kilogramme in the same period last year.

Milk production in India, the world's biggest producer, is estimated at over 121 million tonnes in 2011.