Tuesday, October 16, 2018
 Rising Milk Prices Trigger 10 to 12 Percent Rise in Skimmed Milk Powder Prices  

By Archana Aroor, Mumbai

“The demand for SMP is usually strong in summer, but the market is not ready to buy at the current price levels,” this was informed by a source from an SMP manufacturing company to FnB News.

The source explained that the prices increased to Rs 180 to Rs 200 per kg from Rs 165 a kg for SMP, on account of high demand and less production. With the increase in demand, small players with restricted production are likely to be affected. The crisis could also be a result of restriction on export and import of SMP in the country.

However, the government has imported about 15,000 tonnes of milk powder this year, particularly, targeting companies like Parag, Amul and Mother Diary and ignoring the smaller players in the market.

He said that the ban on export, which was imposed in February, to control milk prices and the rising demand closed avenues for not only milk processors, but also for the traders to deal with the increasing prices.

According to reports, the prices are likely to come down as the processors cannot keep the stocks for long and a reduction of up to Rs 10 per kg is likely to come about soon. Until December, the prices were at Rs 165 per kg but a spurt in milk prices has led to lower sales of milk powder this year.

The source further reiterated that it would be impossible for the milk processors to apprehend the shortage and that the private players would soon opt for alternatives to compensate for the ongoing SMP crisis.

Source: Food and Beverage News (India)


Posted on Thursday, May 26, 2011 (Archive on Thursday, June 02, 2011)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org