New Delhi, Jan.12 The Centre is all set to restrict export of casein from the country in view of the shortfall in milk procurement experienced by dairies, particularly in the North.
During the five months from August to December, almost 7,000 tonnes of casein were exported, which includes 6,300 tonnes from the Tughlakabad dry port in Delhi and the rest out of the Jawaharlal Nehru Port Trust, Mumbai.
To produce one kg of casein, a dairy consumes roughly 35 litres of milk. The 7,000-tonnes exports during this period would, in other words, have used up 24.5 crore litres or over 16 lakh litres a day (LLPD). This is equivalent to 60 per cent of the 26-27 LLPD of milk that Mother Dairy currently markets in Delhi.
Major exporters of casein — which is basically protein extracted from skimmed milk — include northern players such as VRS Foods, Bhole Baba Dairy Industries, Modern Dairies and Industrial Progressive (India) Ltd and Kohinoor Foods and also the Baramati (Maharashtra)-based Schreiber Dynamix Dairies Ltd.
DEPB benefit
Casein exporters now enjoy a 9 per cent duty entitlement passbook (DEPB) benefit on the free-on-board value of their shipments.
Not only is this sop going to be withdrawn, there is a proposal to altogether ban exports, official sources told Business Line.
Apart from casein, a ban of export of milk powder (not much these days) is also apparently on the anvil.
PROVOCATION
The immediate provocation for the latest moves is the inability of Mother Dairy and cooperative dairies to procure sufficient milk. Mother Dairy is currently managing to procure only 20-22 LLPD of milk and it is meeting the balance 6-7 LLPD sales through reconstitution of powder.
“It is consuming 40-50 tonnes powder daily. Whereas this is the time for it to procure surplus milk for conversion into powder, which can be used during the lean summer months when animals produce less,” the sources added. According to them, at the present rate, Mother Dairy will have very little powder stocks left by April.
The company, a 100 per cent subsidiary of the National Dairy Development Board, is said to have already contracted 2,500 tonnes of powder imports from the Irish Dairy Board.
Milk diversion
Mother Dairy is now paying Rs 23.50 for every litre of milk, containing 6.5 per cent fat and 9 per cent solids-not-fat, delivered to its dock.
Casein makers are paying a rupee or two more, thereby leading to significant milk diversion, the sources said.
Source : Business Line