Gujarat to offer Rs 300-cr subsidy on milk powder exports

A French dairy farmer who collects milk from his cows is seen in his farm in La Planche near Nantes,dairy

Gujarat government will offer Rs 300 crore subsidy on exports of around 60,000 tonne skimmed milk powder through the Gujarat Cooperative Milk Marketing Federation (GCMMF) amid slump in international milk prices.

The move will help the milk cooperatives ease inventory of around 1.10 lakh tonne of milk powder lying with milk cooperatives, according to a government release today.

Quoting deputy chief minister Nitin Patel, the release stated that this will directly help state's 35 lakh dairy farmers as milk cooperatives will be prevented from reducing milk procurement price.

"Due to drop in international milk price, export of milk powders has come down which has caused inventory with cooperatives to go up to 1.10 lakh tonne, worth Rs 2,500 crore," the release said.

"In order to help dairy farmers, the government will offer Rs 50 per kg subsidy over export price of skimmed milk powder being exported from GCMMF," it added.

GCMMF, which markets Amul brand of milk and milk products, along with other milk cooperatives, had requested the state government for financial assistance, it said.

Beginning July 1, the government will offer subsidy on export of 60,000 tonne skimmed milk powder over the next six months with a cap of Rs 300 crore, according to the release.

The government maintained that dairy farmers in the state get Rs 8-10 per litre more for milk procured by the cooperatives in the state compared to other states like Uttar Pradesh, Punjab and Maharashtra.