Lok Sabha Question No. 12 (UNSTARRED), answered on 2015-07-21
Subject: Hike in Prices of Milk
Ministry: AGRICULTURE
Asked by: KAUSHALENDRA KUMAR

GOVERNMENT OF INDIA

MINISTRY OF AGRICULTURE

DEPARTMENT OF ANIMAL HUSBANDRY, DAIRYING AND FISHERIES

LOK SABHA

UNSTARRED QUESTION NO.12

TO BE ANSWERED ON 21 ST JULY, 2015

**HIKE IN PRICES OF MILK**

12. SHRI KAUSHALENDRA KUMAR:

Will the Minister of AGRICULTURE      कृषि मंत्री

be pleased to state:

(a) whether the Government is aware that global prices of milk products has sharply declined to even less than the prices of 2010 but prices of milk and milk products have increased and are now more than double in the country;

(b) whether it is a fact that the Government has imposed quantitative curbs on import of milk products which is the main reason for increasing prices of milk and milk products;

(c) the present status of the National Dairy Development Board plans to double the milk output in the country; and

(d) the corrective steps being taken by the Government to increase the milk production and control its prices in the country?

**ANSWER**

THE MINISTER OF STATE FOR AGRICULTURE

(SHRI MOHANBHAI KUNDARIYA)

(a) Increase in prices of milk is attributed to increase in its cost of production. Wholesale price index (WPI) (base year 2004-05=100) of milk in the country and globally during 2010 to 2015 (June’15) is annexed.

(b) There is no restriction in import of milk & milk product. Import of milk & milk product is under open general license and import is allowed subject to fulfillment of Sanitary Import Permit.

(c) National Dairy Development Board is implementing National Dairy Plan (Phase-I) (NDP-I) during 2011-12 to 2016-17 for enhancement of productivity of milch animals which aim to achieve milk production of 150 million tonnes by the end of 2016-17. Till date, 312 sub projects from 16 States with total outlay of Rs 1780.00 Crore has been approved out of which Rs 1492.00 crore would be the grant amount.

(d)	The Department of Animal Husbandry, Dairying and Fisheries, Government of India does not regulate price of milk. Price of milk is determined by the Cooperatives and Private Dairies in the country.  This Department is implementing the following schemes to enhance production of milk in the country which also contributes to stabilizing the milk prices:

1. National Dairy Plan (Phase-I)
2. National Programme for Bovine Breeding and Dairy Development
3. Dairy Entrepreneurship Development Scheme
4. Livestock Health and Disease Control
5. National Livestock Mission Bottom of Form

**Annexure**

**ANNEXURE referred in para (a) of the answer of the LSQ No.12 due for 21.07.2015 by Shri Kaushalendra Kumar regarding “Hike in Prices of Milk”**

**A.	FAO Dairy Price Index from 2010 to 2015**

| **Year**       | **Global**                                                          |
|----------------|---------------------------------------------------------------------|
|                | **FAO Dairy Price Index****  **(butter, milk powder & cheese)** |
| 2010           | 206.6                                                               |
| 2011           | 229.5                                                               |
| 2012           | 193.6                                                               |
| 2013           | 242.7                                                               |
| 2014           | 224.1                                                               |
| 2015 (June’15) | 160.5                                                               |

**Source: http://www.fao.org/worldfoodsituation/foodpricesindex/en/ [Consists of Butter, Skimmed Milk Powder, Whole Milk Powder and cheese price quotations; the average is weighted by world average export trade shares for 2002-04]Top of Form

Bottom of Form

**B.	Wholesale price index (WPI) (base year 2004-05=100) of milk & milk powder in the country**

| **Year**       | **India**        |                         |
|----------------|------------------|-------------------------|
|                | **WPI of Milk*** | **WPI of milk powder*** |
| 2010           | 171.78           | 146.03                  |
| 2011           | 188.18           | 169.97                  |
| 2012           | 205.79           | 182.13                  |
| 2013           | 216.17           | 180.87                  |
| 2014           | 237.87           | 196.32                  |
| 2015 (June’15) | 249.90           | 207.70                  |

*Source: http://www.eaindustry.nic.in,M/o of Commerce & Industry, GoI