Dairies battling SMP glut to get export assistance

ANAND: India’s dairy co-operatives, which are seeing a massive pile-up of skimmed milk powder (SMP), may get some relief in the form of export assistance from the union government.
Union minister of state for agriculture Parshottam Rupala on Friday told TOI that the government will promote export of milk and milk products to overcome this situation.

“We have already issued the necessary directives to officers from our departments,” Rupala told TOI on on the sidelines of the NDDB Dairy Innovation Award ceremony organised by the National Dairy Development Board (NDDB) to felicitate finest dairy cooperatives of the country to mark World Milk Day in Anand on Friday.

The co-operative sector alone is struggling with an inventory of two lakh metric tonne milk powder, which has led to its working capital getting blocked.

Both the NDDB and homegrown dairy giant Amul had approached the centre seeking its intervention.

“We have requested the centre to provide support in suitable form (may be under Merchandise Exports from India Scheme - MEIS) on all dairy products to the tune of around 10 to 20 %,” R S Sodhi, managing director of the Gujarat Co-operative Milk Marketing Federation – the apex marketing body of all the dairy unions of Gujarat that markets brand Amul told TOI.

“It should be granted for export to any nation including Nepal and Bhutan. At present, Government of India grants 7 % MEIS on export of only butter, ghee and cheese to countries other than Nepal and Bhutan,” he said.

“Around 20 % support by way of MEIS on export of only 50,000 MT for SMP at the rate of Rs 36 per kg will amount to only Rs 180 crore but it will go long way in the interest of dairy farmers of the country,” states Sodhi’s letter dated May 29 addressed to secretary of department of animal husbandry, dairying and fisheries.

“If the incentive is granted to dairies of India, the industry has potential to export huge quantities of dairy products which will be beneficial to millions of milk producer members,” he said.

NDDB chairman Dilip Rath too confirmed that the board has requested the central government to announce two schemes to ease the burden of the processors.

“The centre can give working capital loan at lower interest, like 5 % to sustain milk collection. Secondly, it can give assistance to co-operatives to maintain its strategic reserve. The proposal is under consideration,” he said.

Rath, however, said that with the summer picking up, the situation is likely to improve as SMP prices may gradually witness an improvement in the next couple of months.