Govt lifts skimmed milk powder export ban

New Delhi -  The government, to improve the finances of dairy firms and help milk producers, has lifted the ban on exporting of skimmed milk powder.

The government decided to lift the ban earlier this month due to a surplus availability of milk.

The classification of export and import items has been bifurcated and export of new entry namely skimmed milk powder has been made free, said the Directorate General of Foreign Trade in  a notification.

The notification, however, said, exports of milk and cream, concentrated or containing added sugar or other sweetening matter, including whole milk powder, dairy whitener and infant milk  foods are still prohibited.

According to the reports, the government had banned SMP exports in February 2011 to control rise in domestic milk prices.

The dairy industry has been facing losses, as it could not make profit through sale of skimmed milk powder due to steep fall in domestic prices following surplus supplies.

Domestic prices of SMP have declined from 190-200 rupees per kg to 150 rupees per kg during the same period last year. India is the world's biggest producer of milk; the production was  estimated over 120 million tonnes in 2011.