"Prohibition on import of milk and milk products (including chocolates and chocolate products and candies/ confectionery/ food preparations with milk or milk solids as an ingredient) from China is extended for one more year, i.e., till 23.6.2017 or until further orders, whichever is earlier," Directorate General of Foreign Trade (DGFT) said in a notification.
The ban, which expired on June 23, is extended every year.
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India had first imposed the ban in September 2008. It was apprehended that some milk consignments from the country contained melamine, a toxic chemical used for making plastics and fertilisers.
India, however, does not import milk products from China, but has imposed the ban as a preventive measure.
India is the world's largest producer and consumer of milk. The country's milk production increased from 137.68 million tonnes in 2013-14 to 146.31 million tonnes in 2014-15.
Among states, Uttar Pradesh is the leading milk producer, followed by Rajasthan and Gujarat.