Thursday 07 June 2012
Officials said the government would seriously consider the proposal before taking a formal decision on it, given that the supply of milk usually dips in the summer, reports EximOnline.
Nevertheless, the dairy industry anticipates that exports of skimmed milk powder would help absorb the excess stock of 70,000-90,000 tonnes of the commodity spread across various dairies in the country and sustain domestic prices, which have dwindled 26 per cent since November.
Given that the situation was alarming, a senior executive of a company said that firms would be under pressure to cut their annual purchases of milk from farmers beginning June in case the government does not allow export of skimmed milk powder immediately.
He highlighted the plight of the domestic dairies, which he said were at present saddled with massive quantities of milk powder with no outlet to sell due to the sudden ban on export by the Central government in February and the subsequent rise in production of the commodity.
Source: Argentine Beef Packers S.A.
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