Ban on milk powder exports lifted

The ban on milk powder exports has been lifted with effect from October 1. The decision will result in the producers earning additional revenue amounting to crores of rupees. The Gujarat Cooperative Milk Marketing Federation (GCMMF) alone has lost crores in its milk powder export turnover since the ban came into effect.

Parathi Bhatol, chairman, GCMMF, said during a function recently that the ban on exports was a retrograde step. "Since the ban in February this year, the international skim milk powder (SMP) prices have increased from $3000 per million tonne (mt) to $5000 per mt. Our milk producers are obviously sustaining an opportunity loss of $2,000 per mt in terms of additional realisation that they could have got and its consequent impact on the whole range of products," Bhatol said and added that the move had hurting India as the country was not able to export its surplus at the prevailing international prices, which were better than the domestic prices.

Now, when the ban has been lifted, the situation will change drastically. "With effect from October 1, export of milk powder has been permitted. This will give a boost to milk producers with better realisation and lead to a good growth in milk production," said BM Vyas, managing director, GCMMF. He said it was good for consumers and farmers. Mehsana and Banaskhantha cooperatives have increased the procurement prices this year. "After the removal of the ban, we have an option to sell in the domestic market or to export," said Vyas. He said the ban forced the producers to sell in the domestic market and they were not able to realise better prices.

The total milk procurement by the GCMMF member unions during 2006-07 averaged 6.725 million kg per day, a growth of 4.5 per cent over 6.438 million kg per day during 2005-06. The highest procurement was recorded during January 2007 at 8.409 million kg per day. The GCMMF markets milk and milk products for 13 district milk unions of Gujarat, having a membership of 2.6 million milk producers.