CCEA bans export of milk powder till Sep 30

New Delhi, Feb 1 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today banned export of milk powder till September 30 next to cover most part of the lean season.

The decision was taken at a Cabinet meeting chaired by Prime Minister Manmohan Singh here.

Finance Minister P Chidambaram told newsmen that the issue will be reviewed after September 30, 2007.

Mr Chidambaram said the CCEA went into the milk situation prevailing in the country and the supply of milk powder. The import of milk powder was also considered but in view of the difficulties in procuring it, the Comittee took a decision to ban its export.

He said the demand for milk and Skimmed Milk Powder exceeded the supply and the CCEA took note of the fact that Mother Dairy had raised the prices of milk by Rs one a litre.

Mr Chidambaram said the measure has been taken as an exercise in "caution and prudence" as there was hardening of prices in the international market, including the European Union.

Asked whether Mother Dairy would reduce the prices of milk that it has hiked, Mr Chidambaram said the government desired that not only the prices of milk be reduced but prices of all commodities be brought down.

India exported 28,250 tonnes of milk powder in 2004-05, 50,501 tonnes in 2005-06 and 65,000 tonnes in 2006-07.

UNI