The milk production is expected to surpass the 180-million tonne mark in the current financial year mainly on account of various export-linked benefits by the government, according to a report.

“The country is entering its seasonal peak milk production period, which will last for three to four months and cover different regions. We will see an increase in domestic milk supplies, which in turn will lead to additional Symmetric Multi-Processor (SMP) manufacturing and stocking,” Rabo Bank said in its ‘Dairy Quarterly Q4 2018’ report.

The government has increased export subsidies to 20 per cent in order to export surplus SMP and in addition, state-sponsored export-linked benefits by Gujarat and Maharashtra, and a minimum support price for raw milk to farmers in Maharashtra are also in play, Rabo Bank report said.

These benefits are likely to be extended through March 2019, it added. Talking about exports, the report noted that for the first half of 2018-19, India exported 9,600 tonne, compared to 4,750 tonne in the same period last year. In September alone contributed 6,150 tonne, it added. SMP exports are expected to surpass 20,000 tonnes by December 2018 (from April).

The industry estimated that India will export 35,000-40,000 tonne of SMP by March 2019. Meanwhile, it said, SMP and raw milk prices have remained unchanged over the last quarter and are also not expected to move much in the next quarter.

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