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The native market is dealing with an acute scarcity of butter and ghee, after a virtually two-fold enhance in dairy product exports final fiscal 12 months and better consumption throughout Diwali drained the provision pipeline and stocks. According to statistics compiled by the Agricultural and Processed Foods Export Development Authority (Apeda), India exported 19,954 tonnes of butter in 2021-22, about four-and-a-half instances greater than the earlier 12 months’s amount of 4,449 tonnes.

Exports of skimmed milk powder elevated to 46,285 tonnes in the 12 months ended March 31, 2022, a virtually three-and-a-time enhance, whereas shipments of ghee rose near 10% to 10,689 tonnes.

Overall, the worth of dairy product exports elevated to $392 million from $201 million.

Bangladesh, the UAE and Bahrain had been the highest three locations to obtain Indian dairy merchandise in fiscal 2022. Local consumption, particularly of ghee, butter and cheese, too was robust throughout the festivals, which Indians celebrated in a grand approach after two painful years of Covid.

“There was not enough supply in the pipeline as export of skimmed milk powder and butter was good in the previous year (FY22),” stated Devendra Shah, chairman of Pune-based Parag Milkfoods.

Amul is the biggest exporter of dairy merchandise from India. Amul butter, which has greater than 90% share of the butter market, has disappeared from the market throughout the nation. Amul diverted about 10-11% extra milk for liquid milk consumption over the last 2-3 months, including to scarcity of butter and ghee. According to commerce sources, the revenue margins in liquid milk are increased than different milk products. RS Sodhi, MD of Gujarat Cooperative Milk Marketing Federation that owns the Amul model, stated: “Selling milk is our first priority and there was a substantial increase in demand for full-fat liquid milk during the Diwali season. Normally, about 60% of our milk collection is sold as liquid milk. However, during the last 2-3 months, we had to divert 11% more milk towards the liquid milk segment.”

Source : Pehal News Nov 11th 2022