Exports of Indian dairy products top $ 500 million mark, hit eight year high.
What is the news :
- Indian dairy exports are estimated at an eight-year high in FY22 on strong demand, helped by higher global prices.
- Provisional data for the first eleven months, from April 2021 to February 2022, indicates that shipments have touched 1.70 lakh tons valued at more than 552 million dollars, a growth of 93% in value and 63% in volume compared to the same period a year ago. In rupee terms, exports grew to ₹4,115 crore, up 94 percent year on year over ₹2,122 crore, according to DGCIS data.
- The increase in exports is driven by strong demand for basic and value-added dairy products, coupled with an increase in world prices. Trade sources said that both cooperatives and private players have seen good growth in dairy exports during the year.
Raw material exports
- India, the world’s largest milk producer, had previously posted a record shipment of dairy products of $727 million in fiscal 2014, when world prices ruled higher.
- RS Sodhi, CEO of the Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells Amul-branded products, said the growth is due to exports of staples such as skimmed milk powder (SMP), although branded products experienced the usual annual growth. 15-20 percent.
- Amul has shipped around 35,000 tonnes of SMP during the year. The export turnover of the country’s largest cooperative during FY22 saw a 300 per cent growth at around Rs 1,450 crore compared with Rs 520 crore in the previous year.
- “Rising feed costs and fertilizer shortages are seen to affect milk production in dairy-rich countries, driving demand for Indian dairy products. We were never competitive in the dairy fat segment, but now the global fat market is about 20 percent higher than India’s,” Sodhi said.
- Trading sources said unfavorable weather conditions in New Zealand and Australia have affected milk production in these surplus milk countries, resulting in historically high international commodity prices. This has helped Indian entities to export products such as SMP, butter and whole milk powder, among others, to dairy deficit countries. The United States, Bangladesh, the United Arab Emirates, Saudi Arabia and Malaysia are among the largest buyers of Indian dairy products.
- Average realization per tonne by Indian exporters has been $3,238 during April-February, about 19 per cent higher than $2,726 for the same period a year ago. “Global prices have been 15 to 20 percent higher than the Indian domestic market,” Sodhi said.
- The sources said that Karnataka Milk Federation (KMF), the second largest dairy cooperative in the country after GCMMF, has shipped around 1,000 tonnes of SMP during the year.
Sufficient stock
- Despite record exports, Indian dairy farmers still have sufficient stocks of SMP and other products. Early rains in the south may lead to an early start of the peak production season in Karnataka and Tamil Nadu, the sources said.
- Current stocks of SMP in the country exceed one lakh tonne, which is enough to meet this summer’s requirements, Sodhi said.
- Commenting on the export outlook for the current fiscal year, he said: “The outlook is good. This year we also have good orders. Since the Indian market is good, we are no longer betting on the export market.”
India is the largest milk producer.
- India is ranked 1st in milk production contributing 23 per cent of global milk production.
- Milk production in the country has grown at a compound annual growth rate of about 6.2 per cent to reach 209.96 mn tonnes in 2020-21 from 146.31 mn tonnes in 2014-15 .
- The top 5 milk-producing states are: Uttar Pradesh (14.9%, 31.4 MMT), Rajasthan (14.6%, 30.7 MMT), Madhya Pradesh (8.6%, 18.0 MMT), Gujarat (7.6%, 15.9 MMT) and Andhra Pradesh (7.0%, 14.7 MMT).
- The Government of India in association with the Department of Animal Husbandry and Dairying in June 2020 announced a $ 2.1 Bn infrastructure development fund with an interest subsidy scheme to promote investment by private players and MSMEs in dairy, meat processing and animal feed plants which in return is expected to create 3.5 million jobs.
- The Ministry of Food Processing Industries (MoFPI) has issued detailed operational scheme guidelines and has launched an online portal for ‘Production Linked Incentive Scheme for Food Processing Industry(PLISFPI) with an outlay of $ 1.4 Bn to support the creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets.
About National Dairy Development Board (NDDB):
- The National Dairy Development Board(NDDB) is a statutory body set up by an Act of the Parliament of India.
- It is under the ownership of Ministry of Fisheries, Animal Husbandry and Dairying of the Government of India.
- Minister of fisheries, animal husbandry and dairying – Parshottam Rupala
- Headquarter – Anand , Gujrat
- Chairman – Meeenesh Shah
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