NDDB to hold Surplus Imported Milk Powder and Milk Fat as Buffer Stock Allotment to State Milk Federations on Demand

National Dairy Development Board (NDDB) will make allotment of imported milk powder and fat to State Milk Federations only if they are not in a position to maintain supplies to consumers by using locally available fresh milk or surplus milk powder. It has been decided that surplus imported milk powder and milk fat will be held by NDDB as buffer stock and carried over the next lean season. Decision to this effect has been taken in view of recent reports coming from some States that milk availability situation has improved and surplus milk is coming into the organised market due to good monsoon.

The Government is keeping a close watch over the developments in the dairy sector and will take appropriate policy measures as and when necessary in the best interest of both the dairy farmers and consumers.

The background on availability and import of milk and milk products is given below. Due to drought conditions in 2009, estimates of milk production indicated a lower growth rate in 2009-10 as compared to the previous years. The lower growth rate in milk production was largely due to the reduced production of major agricultural crops in 2009-10 such as rice, pulses and oilseed crops which reduced the availability of feed ingredients in the country. Milk procurement by cooperatives grew at only 3% in 2009-10, as compared to a growth of about 10% in the previous year. On the other hand, milk marketing by cooperatives increased by 6% in 2009-10 as compared to the previous year.

In view of these developments, there were serious apprehensions about availability of adequate quantity of milk in the lean/ summer months of 2010. Most State Milk Federations reported drop in milk procurement and lower milk powder and milk fat (AMF/ Butter Oil) stocks even during the flush/ winter season. With a view to augmenting the availability of milk in the summer months and stablise milk prices, the Department of Animal Husbandry, Dairying and Fisheries held discussions with NDDB and State Milk Federations to assess the total requirement of milk powder and milk fat during the summer months. Based on this assessment, NDDB was permitted to import 30,000 MT of milk powder and 15,000 MT of milk fat at 0% import duty to meet the requirements of State Milk Federations for making liquid milk during the lean/ summer season to ensure that there is no disruption of milk supplies to the consumers in the country.

MP:SB:CP: milkimported (13.8.2010)