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Dairy product exports in the current financial year are poised for a major growth, driven by demand for skimmed milk power from traditional markets in South Asia and Africa.
“The demand is strong and we expect our milk powder exports to be between 15,000 and 20,000 tonnes this fiscal,” said R.S. Sodhi, Managing Director, Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns the Amul brand. GCMMF exported about 4,000 tonnes last year.
In the last financial year, the skimmed milk powder shipments from India were made only during a part of the year, as the Government lifted the ban on exports only in June.
Total shipments stood at around 60,000 tonnes last year and in value the dairy product exports exceed Rs 1,400 crore.
“The total dairy shipments could exceed Rs 2,500 crore in value with SMP exports set to cross one lakh tonnes this year,” said Sodhi, whose GCMMF is aiming to more than double to around Rs 350 crore.
Besides demand from traditional markets, such as Pakistan, Bangladesh, Sri Lanka, Egypt, Nigeria and Saudi Arabia, factors such as a weakening rupee and the recent product contamination scare faced by the world’s largest exporter, New Zealand’s Fonterra, are seen boosting India’s shipments.
Exports may rise
“The decline in rupee has made the Indian products more competitive,” said Sandeep Aggarwal, Director at SMC Foods Ltd, a Delhi-based exporter.
The average SMP realisations this year are at around Rs 200 a kg, Agarwal said, adding that the Fonterra crisis could help Indian exporters in markets other than China. India’s milk products are currently barred in China and the same is with Chinese products here.
“There will be a good growth in skimmed milk powder shipments this year” said R.G. Chandramogan, Chairman and Managing Director, Hatsun Agro Products Ltd, the country’s largest SMP exporter.
Hatsun had shipped about 12,000 tonnes of SMP last fiscal, accounting for a fifth of India’s shipments. “A long-term stable policy could help India unlock its potential in dairy exports,” Chandramogan said.
Dairy exports have the potential to touch $5 billion over the next five years, provided the Government provides the right policy support.
Dairy plan
Chandramogan further suggested that corporates should be included in the National Dairy Plan (NDP) that seeks to augment milk production in the country by improving productivity of milch animals. The 15-year NDP is implemented by the National Dairy Development Board in 14 States. It also aims to provide rural milk producers greater access to the organised milk processing sector.
India, the largest producer of milk is eyeing a production of 180 million tonnes by 2021-22 from the present 133 million tonnes.
vishwanath.kulkarni@thehindu.co.in
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