India's milk powder export to grow by 87.5% in 2011

India's export of milk powder in 2011 is expected to grow by 87.5 per cent on increased production of milk in the country, according to a report by the US Department of Agriculture (USDA).

"Sufficient carry-over stocks from 2010 may increase non-fat dry milk (milk powder) exports from India in 2011," the USDA report said.

It said that the overall exports of milk powder in 2010 stood at around 8,000 tonnes. In the current year, the forecast is that the country is expected to export around 15,000 tonnes of milk powder, which is 7,000 tonnes more than the last year's export.

"India generally only exports a small percentage of its total production of milk products due to its growing supply deficit and increasing domestic dairy prices," report said.

Last year, the government had allowed the duty free import 30,000 tonnes of milk powder in 2010 to meet the projected shortage of milk supply during the summer season due to concern over the availability of fodder following the reports of delay and deficient monsoon.

However, better than expected monsoon in the later half of  2010 has pushed the production of milk in the country. Earlier, the USDA had projected that production of milk would amount to 113.5 million tonnes in 2010, up by four per cent.

However, it later revised the estimate upward to 117 million tonnes on account of good monsoon last year, which led to increased availability of fodder for cattle.

"Strong domestic production has led to the imported milk powder being carried over as stock in 2011," the report said. 

The report also pointed out that due to the availability of surplus milk powder in the current year, the country may not have to import milk powder.