In the last financial year, due to disruption in milk production, there was a disruption in supply. The announcement is a reversal of the government’s previous position that dairy products such as butter and ghee can be imported if required. Milk production in India typically increases by six per cent per annum. However, in 2022-23, production is likely to fall by 1-2 per cent due to skin disease in cattle.
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Milk production in 2021-22 was 221 million tonnes. The production has increased by 6.3 percent over the previous year. The decision to not import any more is because there is no shortage of dairy products. The Minister stated that the dairy farmers of the country are getting a profitable price now that the retail price of dairy products is rising and there is no need to worry. Retail milk prices have increased by 13-15 percent in the last 15 months.
At the same time there is a plan to bring Indian products to foreign markets. , the plan is to process and export various value added products instead of milk. “This will require some changes in investment in the dairy industry. If milk quality and herd health can be addressed, India can tap into the high market potential.