The Centre is considering ban of casein exports from the country in view of the shortfall in milk procurement experienced buy the dairies, particularly in the North, according to a report in Business Line by Harish Damodaran. During the last five months from August to December, almost 7,000 tonnes of casein were exported. To produce one kg of casein, a dairy consumes roughly 35 litres of milk. The 7000 tonnes of casein exported during this period would have used 24.5 crore litres of milk or over 16 lakh litres a day (LLPD). Casein makers are paying a rupee or two more, thereby leading to significant milk diversion. The immediate provocation for the ban is the inability of Mother Dairy and other cooperatives to procure sufficient milk.
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, Industrial Progressive (India) Ltd and Kohinoor Foods. The Baramati-based (Maharashtra) Schreiber Dynamix Dairies Ltd is also among the major casein exporters.
Casein exporters now enjoy a 9% 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 Not only is this sop going to be withdrawn, there is a proposal to altogether ban exports, according to the report. Apart from casein, a ban on export of milk powder is also on the anvil. These days not much milk powder is exported because of domestic demand.
Source : .fnbnews.com