With milk prices shooting up, the nationalist Narendra Modi Government on Wednesday decided to scrap the incentive on export of skimmed milk powder (SMP) to boost domestic supply and cool prices.
With possibility of shortage of fodder in view of deficient monsoon affecting milk production, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday decided to withdraw 5 per cent incentive offered to skimmed milk powderexporters. Sources said that this decision was taken at a Cabinet Committee on Economic Affairs meeting, headed by Indian Prime Minister Narendra Modi, on Wednesday.
In June 2012, the previous government had lifted the ban on SMP exports and included this product under Vishesh Krishi and Gram Udyog Yojana under which exporters can avail five per cent duty credit scrip on export value. All the major milk suppliers, including Amul and Mother Dairy, had raised prices of various varieties of milk by Rs 2 per litre to Rs 34-48 per kg in the national capital. A similar increase was seen in other metros.
With possibility of shortage of fodder in view of deficient monsoon affecting milk production, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday decided to withdraw 5 per cent incentive offered to skimmed milk powderexporters. Sources said that this decision was taken at a Cabinet Committee on Economic Affairs meeting, headed by Indian Prime Minister Narendra Modi, on Wednesday.
In June 2012, the previous government had lifted the ban on SMP exports and included this product under Vishesh Krishi and Gram Udyog Yojana under which exporters can avail five per cent duty credit scrip on export value. All the major milk suppliers, including Amul and Mother Dairy, had raised prices of various varieties of milk by Rs 2 per litre to Rs 34-48 per kg in the national capital. A similar increase was seen in other metros.