Skimmed Milk Powder can be exported now. The Directorate General of Foreign Trade (DGFT) has issued a notification in this regard.
Although, the notification has not mentioned about the quantity to be exported, but it is believed that 60,000 tonnes will be exported. The notification is also silent on the subsidy issue, although there was rumour that exporters might get subsidy in order to compete in the international market.
The notification says, “Entry Number 38 in the ITC (HS) Classifications of Export & Import Items has been bifurcated and an entry number 38.01(new entry) “Skimmed Milk Powder” is introduced. Export of new entry namely Skimmed Milk Powder has been made free.” ITC (HS) means Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations.
This notification follows a decision earlier this month. This decision aims to benefit the dairy industry which is facing liquidity crunch.
Meanwhile, according to the notification, exports of milk and cream, concentrated or containing added sugar or other sweetening matter, including whole milk powder, dairy whitener and infant milk foods are still prohibited. Export of skimmed milk powder was banned in February 2011 in order to arrest increasing milk powder.
Domestic prices of SMP have declined to Rs 150 per kg now against Rs 190—200 per kg in the same period last year. Milk production in India is estimated at over 120 million tonnes in 2011 which is highest in the world.