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Market Update : (Milk Products)

Need for quality in milk production

India have attained the first rank in milk production in the world.The first five countries in the world producing maximum milk are India ,USA,Russia, Germany and France.

India produced 13.1 per cent of the total milk produced in the world. Last year produced 750 lakh tonnes of milk valued at about Rs.75000 crores. Due to liberlisation of Indian economy, milk is being imported from other countries. To maintain our first position in milk production, India will have face healthy competition from other countries.For this,only producing largest quantity is not sufficient, but the quality of milk and other factors also need to be borne in mind ,the "operation flood"programme will have to be supported by quality improvement and quality maintenance. The cost of milk production in India is the lowest (21$ per 100 litres ) followed by Denmark .Interestingly, both India and Denmark do not produce subsidy for milk production while in other countries subsidies are given in one form or the other.

Considering low cost of milk production and increasing production, multinational companies have planned to expand their activities, Recently some big milk producers have obtained quality standard certificates. By this way they can market their products in foreign countries. Milk is processed into different products which can be exported to the foreign countries. According to the National Dairy

Development Board (NDDB) milk production is increasing at one percent per annum in the world, while it is increasing at 4 percent in India. Per capita per day consumption of milk has increased to 212gm. In the coming 10 years, the shares of co-operatives in the distribution of milk in municipal corporation area and other cities will be 60 percent and 50 percent respectively. The has decided to increase milk production three times (21 crores) in the coming 10 years. It is felt that the milk producers should get remunerative

price for their milk. Except the Govt. of Maharashtra , no other state fixes minimum prices for milk.