Govt withdraws embargo from export of Skimmed Milk Powder

The Government lifts the ban on exports of Skimmed Milk Powder (SMP).

• The decision comes when there is surplus availability of SMP.

Objective: The decision will perk up the finances of dairy firms and help milk producers.

Export of SMP was banned in February 2011 to control rise in domestic milk prices. Commerce Ministry is analyzing the possibility of imposing import duty on SMP. The dairy industry is gripping with liquidity crunch as it made little profit via sale of SMP due to sharp fall in domestic prices following surplus supplies. Domestic prices of SMP declined from Rs 190-200 per kg to Rs150 per kg in the same period in 2011.

Month: Current Affairs - June, 2012