Dairy cooperatives, companies spar over allowing imported milk powder

Private companies support bulk consumers in allowing 50,000 tonnes SMP to be imported at "zero" duty, but cooperatives say that will harm farmers.

Private and co-operative dairies are at loggerheads with each other over a sharp rise in the prices of skimmed milk powder (SMP).

This has been triggered by a shortage that erupted by sudden increase in the wedding season demand and decline in production due to unfavourable climatic conditions last year.

Private players support bulk consumers, including ice cream manufacturers and confectioners (biscuit and chocolate makers), in their bid to seek 50,000 tonnes SMP import at “zero” duty. But co-operative dairies are protesting such a proposal over its negative impact on farmers.In fact, the Confederation of Indian Industry (CII) has proposed to the