Even as the Centre lifted the six-month old ban on the export of skimmed milk allowing milk federations and companies to tap the export market, consumer activists are worried about good quality milk becoming out of reach for many.
They apprehend that the decision taken in the midst of the festive season — Dussehra, Diwali and Ramzan fall within two months — may lead to price escalation in the domestic market and keep one of the best sources of nourishment out of reach for a large section of the society.
The industry claims that despite a whopping annual milk production of 97.1 million tones, in 2006 India exported only 50,500 tonnes of skimmed milk powder, the prices for which hovers around $ 3500 per tonnes in the global market. But consumer activists are worried about the price. “In the absence of a ban, milk may become out of reach for economically weaker section of the society as the prices will shoot up. Can we afford it in a malnourished country like India? It will surely encourage adulteration,” consumer activist Bejon Mishra said.
Lean production
Within two weeks of exports, the domestic skimmed milk powder price has moved up from Rs 105 to Rs 135 per kg in the last two weeks. Coming into effect on February 1, the ban was intended to prevent the shortage of milk in the domestic market. It was a result of lean production and India’s entry into the export market.
It pushed the milk prices higher in 2006 and 2007, compelling the union agriculture ministry to impose the ban.
However, the dairy industry claims that the export was merely 0.6 per cent of the country’s total production.
“With good rains this monsoon it is expected that the milk production will increase at least by 20 per cent. The government has decided not to extend the ban so that the companies and federations can find a proper market for the additional milk,” a senior official in the department of animal husbandry said.
Gujarat Milk Marketing Federation (which owns Amul), milk federations of Punjab, Rajasthan, Uttar Pradesh, Madhya Pradesh, Karnataka and West Bengal and private companies had lobbied with the Union Government to remove the ban.
The managing director of Karnataka Milk Federation Ramalinge Gowda, who attended a recent meeting convened by the Centre, said that “if skimmed milk export is allowed it would help the federation pay better price to milk procured from farmers”.
“Unless there is a proper policy, lifting of the ban will encourage hoarding and adulteration. Private manufacturers may manipulate the market to create a shortage,” argued Mishra.
