importing milk to cut prices.-is .actually a very bad …pressclip.nddb.coop/prc press...
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FINANCIAL EXPRESS
Importing milk to cut prices.- is .actually a very bad idea: Amul's RS Sodhi INTERVIEW By: Prachi Gupta I Updated: January 2, 20204: 14: 11 PM
While importing milk may decrease milk prices for the time being , the same will result
into a monopoly of foreign players such as New Zealand and Australia . Amul MD
explains why importing is a bad idea.
RS Sod hi, m ana(; ing di rector, G ujarat Cooperative Milk Marketing Federat ion (G CMMF), Amul.
Indian dairy industry has been wary of the entry of foreign players and the country
even decided to pull out of the RCEP deal after facing protests from the dairy
players. While importing mi lk may decrease milk prices for the time being , the same
will result into a monopoly of foreign players such as New Zealand and Australia , RS
Sodhi , managing director, Amul , told Financial Express Online in an interview. He
alsa talked abaut why the recent milk price hike is not much, India's self-sufficiency
in praducing milk and how Indian farmers will suffer if the country allows imparts.
Edited excerpts:
Are dairy players looking to hike milk prices again?
In the last 3 years , milk prices have increased by only Rs 4 per litre and in the last 5
years , prices have increased by .only Rs 8 per litre. This is less than 3% which is
below foad inflation and retail inflatian .
Immediately, we have no plans of hiking prices again .
What about the dairy players' meeting with the government?
We meet the gavernment every 2 manths ta discuss the dairy industry and how to
increase milk praduction in India. We dan 't merely discuss price hike in the meeting .
Issues such as consumptian , feeding practices, milk inflow and growth and what ta
do in the future are discussed . This is not to decide or convey any price hike. It has
been a regular exercise for 15 years .
In dairy, farmers have started to get remunerative prices after 3 years and they are
encauraged to produce more. If farmers don't get prices, they will exit the dairy
sectar. In fact, yaung farmers are nat interested in dairy. Then we depend an
imparts.
Does it not make sense to import more if the country is producing less? There
is some news about India witnessing a sluggish flush period in 2019.
The flush season starts after Diwali. Diwali was one month early last year. The flush
season has started in December. Every day, we are getting 60 lakh litres mare milk
than the summer season . The seasan has just started and will continue till April. The
delay happened because of extended monsoon. But, there is plenty of milk. Import
should happe.n when there is a scarcity .of milk.
What about the Skimmed Milk Powder?
Some milk processors were used ta getting cheap milk pawder because same
people started desperate selling of Skimmed Milk Pawder (SMP) last year. The cost
was Rs 250-260 per kg , they sold it at Rs 150 per kg . They were selling it on loss
because the stock was in plenty.
This will not continue. The Skimmed Milk used to sell for Rs 250 per kg in 2014-15 .
Now it sells for Rs 300 per kg . In the last 4-5 years , the powder rate has only
increased by Rs 40-50 per kg. This is not much.
You should either think of the farmer or the consumer's welfare. Farmers should get
good prices for their produce so that he is encouraged to produce more or we will be
dependent on imports. Consumers should also get products at the right price. 3%
inflation is not much.
Certain sections of society might still not be able to afford milk. Won't imports
make milk cheaper for them?
Imports won't be cheap. This will be a short-term thing . The day we start importing,
Indian price will decrease. Farmers will stop producing, we will get dependent on
imports. What will 10 crore farmers do? What will happen to the livelihood? This will
become a monopoly of the foreign players. It will only help multinationals and big
processors who will import and sell milk in India. India will become dependent on
imports like we are dependent on· edible oil. Till the 90s, we were more or less self
sufficient in edible oil. Now, 70% of our consumption is imported. The milk market is
7-8 times bigger than the edible oil industry.