The Hindu Business Line : Hatsun Agro also declines Apeda award

New Delhi March 30 After the Gujarat Co-operative Milk Marketing Federation's (GCMMF) declining the Commerce Ministry's Apeda award for best dairy exporter, in protest against the Centre's decision banning export of milk powder, it is the turn of the country's largest private sector milk handler, Hatsun Agro Product Ltd, to follow suit.

"GCMMF has taken a bold initiative not to accept an award that has no meaning, since the same Government that wants to pat our back is actually hitting us with a stick by banning milk powder exports. It is fair that we also decline the bronze trophy that is being given to us," said Mr R.G. Chandramogan, Managing Director of the Rs 550-crore Chennai-based dairy company.

The 2005-06 Apeda awards under various farm good export categories are scheduled for presentation by Commerce Minister Mr Kamal Nath on April 4.

In 2005-06, GCMMF - the country's No. 1 dairy concern, with net sales of Rs 3,734.13 crore and average milk procurement of 62.50 lakh litres per day (LLPD) - recorded an export turnover of Rs 134.23 crore.

Hatsun Agro, which handles 13 LLPD and owns the Arun ice cream and Komatha and Arokya milk brands, exported Rs 77.45 crore worth of dairy products.

Mr Chandramogan said that the ban on milk powder exports made "very little sense," given that the total shipments of 50,500 tonnes made in 2005-06 was equivalent to less than six lakh tonnes (lt) of milk. This, in turn, amounted to a fraction of the country's annual milk production of 950 lt.

"If the Government were concerned over milk shortages in Delhi, the right approach would have been to pay farmers better and step up procurement from neighbouring States that are flush with milk," he said.

"Instead, by banning exports, they have hurt millions of producers, who, for the first time, were in a position to benefit from high global prices."

Skimmed milk powder of Western Europe origin is currently quoting at $3,600-4,000 a tonne, against $2,200-2,350 at this time last year.

The global hardening of prices is due to the phasing out of export subsidies by the European Union and dry weather in Australia and New Zealand.

"If inflation is a worry, the Government should target pulses or fruits and vegetables, where farmer gets hardly Rs 2 out of Rs 10 price paid by the final consumer. If milk is sold at Rs 10, we pass on at least Rs 6-7 to the farmer. And unlike paddy or sugarcane, which is sold after 4-10 months, milk provides the farmer cash on a daily or weekly basis," Mr Chandramogan added.

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