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Indian SMP export ban

This article was originally published in Foodnews

THE Indian government has banned exports of skimmed milk powder (SMP), days after two Indian dairies raised their retail prices by INR2/litre (US$0.04/litre). The move is intended to ease domestic milk prices, but some fear that this could damage India's export credibility. Milk prices have shot up over the last 12 months - last month all major dairies raised their prices by INR1/litre, a 17% rise over 6 months. Some predict that a further 25% increase over the summer is likely. It is widely recognised that increased exports of milk powder, whole and skimmed, have been pushing up milk prices.

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