Exporters to lose Rs 500 cr due to ban on milk powder exports

Mumbai, Feb 27 (PTI) The Government''s decision to banexport of milk powder and its derivative casein to rein inrising prices in the domestic market will result in a loss ofaround Rs 500 crore to exporters of milk products, an apexindustry body has said.

"India is the largest producer of milk. However, weexport only a small percentage of the total production of milkproducts. The Government ban on exports of skimmed milk powder(SMP) and casein, will hit the exporters badly," Indian DairyAssociation Chairman (West Zone) Arun Patil told PTI here.

The total production of milk powder and casein inIndia is around 3-lakh metric tonnes. Of this, only 40,000metric tonnes (mainly casein) is exported.

Last year, India exported milk powder and casein worthRs 500 crore, Patil said.

"The Government''s decision is highly impractical. Theban will not only affect the exporters but also harm thereputation of India in the international market."

Instead of imposing a sudden ban, the Government needsto form a policy to ensure that the production of milk isenhanced and the prices do not go up suddenly, he said.

"The Government needs to come out with a dynamicpolicy that will encourage milk producers to increaseproduction. Also, rearing milch animals and fodder productionon non-fertile land should be encouraged through the NationalRural Employment Guarantee Act (NREGA). This will boost milkproduction in the country," Patil said.

The milk suppliers have already increased milk pricesby Rs 2-3 per litre this month. .