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Dairy Co-ops, Companies Spar Over Allowing Imported Milk Powder

24 January 2020

INDIA - Private and co-operative dairies are at loggerheads with each other over a sharp rise in the prices of skimmed milk powder (SMP).

This has been triggered by a shortage that erupted by sudden increase in the wedding season demand and decline in production due to unfavourable climatic conditions last year.

Private players support bulk consumers, including ice cream manufacturers and confectioners (biscuit and chocolate makers), in their bid to seek 50,000 tonnes SMP import at “zero” duty. But co-operative dairies are protesting such a proposal over its negative impact on farmers.In fact, the Confederation of Indian Industry (CII) has proposed to the government to allow import of SMP.

Trading currently between ~310 and ~320 a kg, SMP prices have jumped 15 per cent in the last one month and doubled from its level a year ago.

“The SMP price is at its peak. Hence, there is no room for a further price rise. Any price rise from the current level would prompt consumers to shift to liquid milk and other substitutes within or outside the dairy sector. Thus, the current price rise is a temporary phenomenon. SMP prices would start declining from the current level and stabilise in the next one month,” said B C Sateesh, managing director, Karnataka Co-operative Milk Products’ Federation (KMF), India’s second largest co-operative dairy.

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Source: Business Standard

TheCattleSite News Desk



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