Question : Milk Prices

(a) the total quantum of Skimmed Milk Powder (SMP) exported during each of the last three years and the current year;

(b) whether international prices of SMP have crashed and dairy companies in the country are not able to export SMP produced from the surplus milk and if so, the details thereof;

(c) whether there is also a sharp fall in wholesale milk prices in the country recently and if so, the details thereof;

(d) whether the farmers in some parts of the country particularly Maharashtra have been agitating against a sharp fall in wholesale milk prices and if so, the details thereof;

(e) whether the Government proposes to fix MSP for milk in the country on the lines of agricultural produce; and

(f) if so, the details thereof and if not, the reasons for the same along with the corrective measures taken/being taken by the Government to overcome the difficulties faced by farmers?

ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
(SHRIMATI KRISHNA RAJ)

(a) The total quantum of Skimmed Milk Powder (SMP) exported during each of the last three years and the current year is given below;

Year Quantity (in Tonnes)
2015-16 13,838.21
2016-17 14,698.17
2017-18 11,307.88
2018-19(Apr-May) 1,539.57
(Source: D/o commerce)


(b) International price of Skimmed Milk Powder (SMP) has decreased from $2450-2650 per metric tonnes during March 2017 to $ 1925-2075 per metric tonnes during July 2018 (source: USDA).

(c) Month-wise Wholesale Price Index (Base Year:2011-12=100) of milk during last one year is given below;

Month
/Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017 135 135.4 136.5 137.7 138.5 139.2 139.2 139.7 140.4 140.2 140.2 140.2
2018 140.3 140.6 140.7 141.2 141.7 142.5 - - - - - -
(Source: Ministry of Commerce and Industries)

(d) This Department received the information about agitation in Maharashtra by dairy farmers demanding subsidy for milk producing farmers. In Maharashtra, 50,000 Tonnes stock of Skimmed Milk Powder (SMP) was lying in the godowns of Cooperative and Private sector dairies and the demand is low in the market. This is likely to affect the procurement price given to the farmers. Government of Maharashtra has taken following measures to overcome the situation;

(i) Export Subsidy of Rs 50/- Per Kg of SMP and Rs 5/ litre of liquid milk for next three months period.
(ii) Subsidy of Rs 5/- per litre for cow milk for conversion into milk products to cooperatives and private dairies subject to condition that minimum price of Rs 25/litre shall be paid to farmers digitally.
(iii) Government of Maharashtra has issued directions to supply milk and milk products through Schools under Mid Day Meal Scheme and Anganwadis under ICDS scheme.

(iv) The State Government approved the sale of Aarey''s milk through Fair Price Shop.

(e) & (f) Government does not control prices of milk. This department does not have any proposal to fix MSP for milk in the country. Milk is a highly perishable product and prices are decided by the Cooperative and Private dairies based on cost of production. The Government of India, D/o Commerce vide notification dated 13.07.2018 has allowed 10% export incentive under Merchandise Export from India Scheme (MEIS) for all dairy products.

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