Business Daily from THE HINDU group of publications
Monday, Sep 03, 2007
ePaper
Business Daily from THE HINDU group of publications Monday, Sep 03, 2007 ePaper |
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Agri-Biz & Commodities
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Dairy & Dairy Products Industry & Economy - Exports & Imports Going the sugar way?
Harish Damodaran New Delhi, Sept 2 The domestic dairy industry has dismissed the claims made in the CII-circulated ‘paper’ to justify an extension of the ban on milk powder exports. During 2005-06, exports of skimmed and whole powder exports totaled 50,501 tonnes. This is equivalent to about 0.57 million tonnes (mt) of milk or 0.6 per cent of the country’s production of 97.1 mt. “To believe that the milk produce of 2.11 days is responsible for shortages or pushing up milk prices is absurd”, industry sources noted. They also questioned the claim that the powder exports were mostly undertaken by private commodity traders. Exports
“Out of the 50,500 tonnes exports, the bulk was accounted for by Sterling Agro Industries (10,000 tonnes), Hatsun Agro Product (8,500 tonnes), Gujarat Cooperative Milk Marketing Federation (8,000 tonnes) and VRS Foods (4,000 tonnes). All of them are manufacturer-exporters. Even if there are traders among some exporters, why should it matter?” the sources quipped. According to them, neither was it true that exports had not benefited milk producers. On the contrary, the cooperatives unions in Gujarat were now paying Rs 280-290 per kg of fat, against Rs 220-225 at this time last year. That translates into a Rs 5 a litre increase for buffalo milk and Rs 3 for cow milk. ‘Already surplus’
The current danger, in fact, lay in milk going the sugar way. Since July, skimmed milk powder prices have fallen from Rs 145 to Rs 110-15 a kg. “Improved milk realisations have led farmers to invest in their cattle and boost productivity. And with the good monsoons, there is enough fodder and we are already seeing surplus milk in the market”, the sources added. If the export window is not opened now, “you will see the animals being dispatched to the slaughter house, just as cane growers are having to burn their crop after initially planting more area in response to remunerative prices paid by mills”. From banning exports, the Centre will then end up forking out various sops, as it is doing in the case of sugar.
Related Stories: Move to ban skimmed milk powder exports flayed Ban on milk powder exports set to go Dairy industry wants ban on skimmed milk powder exports to go Review of ban on milk powder exports after Sept More Stories on : Dairy & Dairy Products | Exports & Imports
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