Urgent intervention of Central Government led to easing of SMP surplus stock

Pashu Sandesh, 09 July 2019

Effective and urgent intervention by the Central Government to ease out surplus Skimmed Milk Powder (SMP) has started yielding results. The surplus SMP which has peaked to 2.08 Lakh Metric Tonne (MT) in May 2018 last year, has eased out to 1.67 Lakh MT in March 2019. This information was provided by the MoS for Fisheries, Animal Husbandry and Dairying, Dr Sanjeev Balyan in Lok Sabha recently in a response to a question on the problem of surplus SMP in the country. 

Dr Balyan elaborated on the measures to reduce the surplus SMP stocks. The details of measures taken by the Government are as under:

  • Increased the import duty of Whey Powder from 30% to 40% vide notification dated 27.03.2018.
  • D/o Commerce vide notification dated 13.07.2018 has allowed 10% export incentive under Merchandise Export from India Scheme (MEIS) for all dairy products. Further, vide Public Notice 40/2015-2020 dated 27.09.2018 had enhanced MEIS benefit to 20% from the current 10% for certain dairy products from the date of publication of this Public Notice for a period up to 12.01.2019.
  • Advisory to all the States to include the supply of milk/milk products of Cooperatives through Mid-day Meal Scheme, Anganwadis under Integrated Child Development Scheme (ICDS), Health schemes, Tribal Hostels and Government/Institutional canteen.
  • State Governments of Maharashtra and Gujarat had announced to provide a subsidy of Rs.50/Kg for Skim Milk Powder for a period upto19.01.2019 in case of Maharashtra and for Gujarat up to 01.01.2019 respectively.