Milk Powder Manufacturers Fear Extension Of Export Ban

NEW DELHI - Skimmed milk powder (SMP) manufacturers are a worried lot. Three months into the ban on export of milk powder, there is apprehension in the industry that the ban may be extended. They are of the view that banning exports alone would not improve milk supply as other factors such as export of casein and oil cakes are hurting availability of milk.
calendar icon 11 May 2007
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Kuldeep Saluja, managing director, Sterling Agro Industries, the largest exporter of SMP in 2006-07 said, “With casein continuing to be exported, the desired affect of creating a milk buffer for the summer months will not take place because farmers are diverting the milk to casein manufacturers.

Ban on SMP exports will not help the availability of liquid milk until the government bans casein export because it takes two-and-a-half times more milk to produce 1 kg of casein as compared to SMP.”

Saluja said that the industry representatives were planning to approach the ministry to review the ban amid fears that the industry might slow down. He said that milk consumption by casein manufacturers had increased to 3.5 - 4 million litre per day, compared to the pre-ban consumption of a little over 2 million. This, he said, was indirectly contributing to the rise in price of milk powder.

Source: FinancialExpress
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