Saturday, January 23, 2010


India has been proud of its achievements in reaching the top amongst milk producing nations with fluid milk out put touching 105 million tons. Sadly what has been gained through hard work of the dairy farmers is about to be frittered away through short sighted policies of GOI and to add to the humiliation a senior minister has given sufficient hints to the hoarders that there is going to be a milk shortage in summer so that they can get ready to squeeze the consumer in the coming months!. In order to have a better perception of the bungling by GOI have a look at the following report.

"Diversion of milk to produce casein has been a serious concern. This is the reason for seeking a ban on export of milk, casein and other milk products," an agriculture ministry official said. There is a shortage in the local markets as exporters pay an extra Rs 2-3 per litre more for milk, he added. During August – December 2009, about 7,000 tonnes of casein was exported from Tughlakabad dry port in Delhi and Jawaharlal Nehru Port Trust in Mumbai. About 35 litres milk is used to produce a kg of casein. The 7,000 tonnes of casein consumed 24.5 crore litres or over 16 lakh litres a day of milk. This is nearly 60 per cent of 26-27 lakh litres milk marketed every day by Mother Dairy in Delhi, of this 6-7 lakh litres per day is by re-converting milk powder into liquid form. Casein exports enjoy 9 per cent duty entitlement passbook (DEPB) benefit on the free-on-board value of their shipments.

Imagine the consequences of India entering the international market for important of milk powder! The world price for milk is going to hit the roof if such a thing happens and EU countries would be the happiest lot as their surplus milk powder and butter, being procured under a purchase scheme from their


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