With Stagnant Milk Output In India, Govt May Consider Import Of Diary Products

The government is likely to only import dairy products, such as butter and ghee, after assessing the stock position of milk in southern states, where the flushing season has started.

Fodder prices have risen, leading to milk inflation.

India may consider importing dairy products due to supply constraints caused by stagnant milk production in the last fiscal year. During a press conference, Animal Husbandry and Dairy Secretary Rajesh Kumar stated that the government will intervene and import dairy products, such as butter and ghee, if necessary after assessing the stock position of milk in southern states, where the flushing season has just begun. Milk production in India was 221 million tonnes in the financial year 2021-22. This was a rise of 6.25% from the 208 million tonnes produced in the previous year.

Singh noted that milk production in India remained stagnant in the 2022-23 fiscal year due to lumpy skin disease in cattle, reported news agency PTI. Despite this, domestic demand grew by 8-10% during the same period due to a post-pandemic demand rebound. Singh said there is no constraint in milk supply in India. An adequate inventory of skimmed milk powder (SMP) is being maintained, he said. However, in the case of dairy products, particularly fats, butter, and ghee, the stocks are lower than the previous year.

According to Singh, however, importing dairy products may not benefit the country right now as international prices are on a high. If global prices remain high, the government will assess the flush season in the rest of the country before making a decision.

Singh further said that the shortage will be less in the northern part of the country as the lean season is likely to arrive late due to temperature falling after untimely rains in the last 20 days. Lumpy skin disease, which killed 1.89 lakh cattle last year, and the post-pandemic rebound in milk demand have had a significant impact on India's milk output, according to the secretary.

Singh noted that due to the impact of lumpy skin disease, the total milk production remained stagnant. Typically, milk production in India grows by 6% annually. However, this year, it will either be stagnant or grow at 1-2%. Since the government considers only the milk production data of the cooperative sector, Singh assumed that it would remain stagnant.

Fodder prices have risen, leading to milk inflation, according to Singh. The dairy sector has been growing annually at 6%, while the fodder crop area has remained stagnant in the last four years. India last imported dairy products in 2011.

(With PTI inputs.)