government has announced its decision to give export subsidy of up to Rs 300
crore to the Gujarat Cooperative Milk Marketing Federation Limited (GCMMF) to
sell its milk powder in the international market. The Gujarat Cooperative Milk
Marketing Federation Limited (GCMMF) markets the brand Amul.
making the announcement, the state’s deputy chief minister Nitin Patel said
that with a cut in the price of milk powder in the international market, the
export of GCMMF’s milk powder had decreased and the cooperative had sought the
government’s help. “The prices of milk powder in international markets have
gone down significantly. As a result, the export of milk powder in
international market has decreased.
to Patel, due to the decrease in export of milk powder, around 1.10 lakh metric
ton of milk powder, worth Rs 2,500 crore, is lying with the GCMMF. GCMMF’s
annual turnover is Rs 40,000 crore. He said that to sell the milk powder in the
international market, the prices need to be lowered. In that scenario, the milk
federation will face losses. The government has, thus, decided to give
GCMMF a subsidy of Rs 50 per kg for the export of milk powder for six months
starting July 1. An upper limit of Rs 300 crore has been put on the subsidy.
to a spokesman of GCMMF, while the rate of milk powder in international market
is Rs 135 per kg, the production cost of milk powder for GCMMF is Rs 230 per
kg. With the subsidy, the state will share the loss in clearing a stock of
around 60,000 metric ton milk powder, Patel said. “Rest of the loss will be
borne by GCMMF,” Patel added.