Lok Sabha Question No. 618 (UNSTARRED), answered on 2019-06-25
Subject: Creation of Buffer Stock for Milk
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: M. K. Raghavan

## GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING LOK SABHA

UNSTARRED QUESTION NO.618 TO BE ANSWERED ON 25 th  JUNE 2019

## CREATION OF BUFFER STOCK FOR MILK

## 618. SHRI M.K. RAGHAVAN:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING मात्स्यिकी , पशुपालन और डेिरी मंत्री be pleased to state:

- (a) whether there is any proposal to discard creating of buffer stock for milk and other dairy products by the NDDB, if so, the details thereof;
- (b) whether it is also a fact that huge quantum of skimmed milk powder and other dairy products will remain unsold due to this decision, if so, the details thereof; and
- (c) the criteria for pricing various products sold by NDDB and also the pricing pattern on purchases made from private players?

## ANSWER

THE MINISTER OF STATE FOR FISHERIES, ANIMAL HUSBANDRY&DAIRYING (DR. SANJEEV KUMAR BALYAN)

- (a) No  Sir,  Department  of  Animal  Husbandry  and  Dairying    is  implementing  a scheme  named  'Supporting  Dairy  Cooperatives  and  Farmer  Producing  Organization Engaged in  Dairy  Activities  (SDFPO)'  to  provide  soft  loan  for  working  capital  to  the Dairy  Cooperatives  to  help  them  maintain  buffer  stocks  of  dairy  commodities.  The scheme is to be implemented by National Dairy Development Board (NDDB).

The objectives of the scheme are:-

- (i) To assist the State Dairy Cooperative Federations  and Farmer Producing Organization by providing soft working capital loan to tide over the crisis on account of severely adverse market conditions or natural calamities.
- (ii) To provide stable market access to the dairy farmers.
- (iii) To  enable  State  Cooperative  Dairy  Federations  and  Farmer  Producing Organization to continue to make timely payments of dues to the farmers.
- (iv) To enable the Cooperatives and Farmer Producing Organization to procure milk  at  a  remunerative  price  from  the  farmers,  even  during  the  flush season.

Under  the  scheme,  a  corpus  of  Rs.300  crore  is  to  be  kept  in  perpetuity  with  NDDB. Under the Scheme Rs.53.00 crore has been released to NDDB.

(b) It is not correct to say that lack of creation of buffer stocks will lead to creation of huge quantum of skimmed milk powder (SMP) and other dairy products. Buffer stock of SMP are  created  when  milk  is  not  sold  in  market  and  is  converted  to  SMP  &  White Butter to save them from getting spoilt. For selling the stock of SMP, the Government had  announced  exports  incentives  under  Merchandize  Exports  from  India  Scheme (MEIS)  and  other  measures  by  Government  of  India  as  well  as  from  respective  State Governments,  some  quantity  of  stocks  of  dairy  commodities  have  been  exported  by cooperatives.  This  led  to  reduction  in  pressure  of  stocks  on  domestic  milk  producers. Keeping in view the present situation of milk production and consumption, the stocks of skimmed milk powder and other dairy products are manageable.The details of measures taken by the Government to stabilise the stocks of dairy products are as under;

- i. Increased  the  import  duty  of  Whey  Powder  from  30%  to  40%  vide notification dated 27.03.2018.
- ii. D/o  Commerce  vide  notification  dated  13.07.2018  has  allowed  10% export incentive under Merchandise Export from India Scheme (MEIS) for all dairy products. Further, vide Public  Notice  40/2015-2020  dated 27.09.2018 had enhanced MEIS benefit to 20% from the current 10% for certain dairy products from the date of publication of this Public Notice for a period upto 12.01.2019.
- iii. Advisory  to  all  the  States  to  include  supply  of  milk/milk  products  of Cooperatives through Mid-day Meal Scheme, Anganwadis under Integrated  Child  Development  Scheme  (ICDS),  Health  schemes,  Tribal Hostels and Government/Institutional canteen.
- iv. State Governments of Maharashtra and Gujarat had announced to provide subsidy of Rs.50/Kg for Skim Milk Powder for a period upto19.01.2019 in case of Maharashtra and for Gujarat upto 01.01.2019 respectively.

During the financial year 2018-19, the stock of SMP with dairy cooperatives has declined from 1.82 Lakh Metric Tonnes on March 2018 to 1.67 Lakh Metric Tonnes in March 2019 after reaching a peak of 2.08 Lakh Metric Tonnes in May 2018.

(c) National Dairy Development Board (NDDB) doesn't take part in purchase or sale of any dairy products.

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