Why India might need to import dairy products like butter, ghee

Why India might need to import dairy products like butter, ghee

Animal Husbandry and Dairy Secretary Rajesh Kumar Singh has said that the country's milk production remained stagnant in the 2022-23 fiscal due to lumpy skin disease in cattle, while the domestic demand grew by 8-10 per cent in the same period because of a rebound in the post-pandemic demand.

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(Image: Representational)(Image: Representational)
Business Today Desk
  • Apr 6, 2023,
  • Updated Apr 6, 2023 1:11 PM IST

India may look at importing dairy products such as butter and ghee if needed, due to a supply constraint for such items caused by stagnant milk production in the last fiscal.

A top government official, while addressing a press conference, stated that the government will intervene to import dairy products like butter and ghee, if required, after assessing the stock position of milk in Southern states, where the flushing (peak production) season has started now.

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Milk production in India stood at 221 million tonne in 2021-22. This was a rise of 6.25 per cent from the 208 million tonne produced in the previous year.

Animal Husbandry and Dairy Secretary Rajesh Kumar Singh said that the country's milk production remained stagnant in the 2022-23 fiscal due to lumpy skin disease in cattle, while the domestic demand grew by 8-10 per cent in the same period because of a rebound in the post-pandemic demand, PTI reported.

"There is no constraint in milk supply as such in the country...There is an adequate inventory of skimmed milk powder (SMP). But in the case of dairy products, especially fats, butter, and ghee, etc, the stocks are lower than the previous year," he said.

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Singh, however, noted that the imports may not be beneficial at this point in time as international prices in recent months are ruling firm.  

If global prices remain high, the government will assess the flush season in the rest of the country and then take a call accordingly.

According to Singh, the shortage will be less in the norther part of the country where the lean season has been postponed with temperature cooling down due to untimely rains in the last 20 days.

He added that rise in fodder prices have led to milk inflation in the country.

There is a problem in fodder supply as the fodder crop area has remained stagnant in the last four years, while the dairy sector has been growing annually at 6 per cent, he mentioned.

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India last imported dairy products in 2011.

(With PTI inputs)

Also Read: Cabinet may give green light to Kirit Parikh recommendations on Natural Gas

Also Read: Tim Cook to visit India to launch Apple's first store, may meet PM Modi: Report

India may look at importing dairy products such as butter and ghee if needed, due to a supply constraint for such items caused by stagnant milk production in the last fiscal.

A top government official, while addressing a press conference, stated that the government will intervene to import dairy products like butter and ghee, if required, after assessing the stock position of milk in Southern states, where the flushing (peak production) season has started now.

Advertisement

Milk production in India stood at 221 million tonne in 2021-22. This was a rise of 6.25 per cent from the 208 million tonne produced in the previous year.

Animal Husbandry and Dairy Secretary Rajesh Kumar Singh said that the country's milk production remained stagnant in the 2022-23 fiscal due to lumpy skin disease in cattle, while the domestic demand grew by 8-10 per cent in the same period because of a rebound in the post-pandemic demand, PTI reported.

"There is no constraint in milk supply as such in the country...There is an adequate inventory of skimmed milk powder (SMP). But in the case of dairy products, especially fats, butter, and ghee, etc, the stocks are lower than the previous year," he said.

Advertisement

Singh, however, noted that the imports may not be beneficial at this point in time as international prices in recent months are ruling firm.  

If global prices remain high, the government will assess the flush season in the rest of the country and then take a call accordingly.

According to Singh, the shortage will be less in the norther part of the country where the lean season has been postponed with temperature cooling down due to untimely rains in the last 20 days.

He added that rise in fodder prices have led to milk inflation in the country.

There is a problem in fodder supply as the fodder crop area has remained stagnant in the last four years, while the dairy sector has been growing annually at 6 per cent, he mentioned.

Advertisement

India last imported dairy products in 2011.

(With PTI inputs)

Also Read: Cabinet may give green light to Kirit Parikh recommendations on Natural Gas

Also Read: Tim Cook to visit India to launch Apple's first store, may meet PM Modi: Report

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