Govt attributes rise in milk prices to higher input costs

The government today attributed the rise in prices of milk and its products to higher input cost and drought that had affected almost half of the country last year.

"The increase in prices of milk and milk products is due to increase in prices of cattle feed ingredients in last one year and deficient rainfall in many milk producing states during 2009," Minister of State for Agriculture K V Thomas said in a written reply to the Lok Sabha.

Thomas said the rise in price is also due to diversion of substantial quantity of milk for manufacture of casein, a protein, and higher consumption in the rural areas due to rise in disposable income leading to increase in demand.

The government has not banned export of milk and its products, he said adding that the incentives for overseas shipment in the category, however, have been withdrawn since August 2009.

The export incentives were withdrawn under the Vishesh Krishi Gram Udyog Yojna to augment the availability of milk in the domestic market, the minister added.

On rising sugar prices, Agriculture Minister Sharad Pawar in a separate reply said, "The prices have increased due to interplay of market sentiments and demand-production gap. They have also decreased responding to the measures taken by the government to augment domestic availability of sugar."

He noted that sugar rates are showing a declining trend as on February 19 as compared to prices in the previous month.

Ex-mill rates of S-30 grade sugar in Maharashtra and Uttar Pradesh have declined in just on month in the range of Rs 340-390 per quintal to Rs 3,280 and Rs 3,600 per quintal, respectively, he said.

Similarly, the retail sugar price in Delhi has dipped by Rs 4 to Rs 43 a kg in the review period, Pawar added.