In wake of rising retail prices, the government is considering steps to discourage exports of milk products, by withdrawing export incentives currently in force. Among others, government provides incentives on exports on skimmed milk products under Vishesh Krishi and Gram Udyog Yojana (VKGUY).
The issue was deliberated during the high-level meeting convened by Finance Minister Arun Jaitley to discuss issues related to inflation and price rise of essential commodities. Jaitley in the meeting underscored that government was monitoring prices of 22 commodities and a price increase in 4-5 commodities had been noticed, including that of milk among others.
Recently, all major milk producers, including Mother Dairy and Amul, raising milk prices by Rs 2 per litre across all variants due to increase in procurement costs, lifted annual retail inflation in milk and its products in May at 11.28%. Meanwhile, milk production in India, the world's largest producer and consumer, stood at 132.4 million tonnes 2012-13, as per National Dairy Development Board (NDDB) data. It is estimated to have increased by 6 per cent to about 140 million tonnes in 2013-14 fiscal.
In the high-level meeting, which was also attended by Food Minister Ramvilas Paswan, Jaitley outlined some of the key steps the government would take to check the food price rise, which includes, export restrictions on potato and onion, Removal of curbs on sale of fruits and vegetables, additional supply of rice, import of pulses and edible oil among others.
