Ban on dairy products hitting farmers, dip in revenues

New Delhi, Sep 23 (UNI) The ban on dairy exports has translated into low return for the farmers and a dip in the revenue of various milk co-operatives, with Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) witnessing a decrease from Rs 134 crore during 2005-06 to Rs 60 crore this year, a study said.

The government banned the export of skimmed milk product from February this year to make liquid milk available to domestic consumers at a reasonable price as the price of milk in the domestic market was escalating.

''India's image as the largest producer of milk in the world takes a nosedive in presence of export ban and we also tend to loose the export opportunity,'' a white paper on 'Impact of ban on export of Skimmed Milk in India' brought out by Health Informatics said.

Exports of skimmed milk powder from India have shot up from 28,250 tonnes in 2004-05 to 50,501 tonnes during 2005-06 and it would be reach upto 68,000 tonnes this year.

The phasing of export subsidies on milk products in European Union and drought in Australia are responsible for the current shortage and hence upward trend in prices, the study said, adding that the Indian milk producers (with export priorities) stand to benefit from this scenario, whereas the actual consumers would have to shell out a higher amount for the every litre that he consumes.

International market prices of dairy products have skyrocketed since December 2006.

High milk prices are expected to boost growth in global milk production from 2.3 per cent in 2006 to 2.7 per cent in 2007, when it may reach 675 million tonnes. The expansion is being encouraged by higher milk prices and gains in productivity in certain developing countries, as well as in emerging exporting countries, where producers have been benefiting from the rise in world prices.

UNI