The government is considering steps to discourage exports of milk products in the wake rising retail prices.
The issue figured during the high-level meeting convened by Finance Minister Arun Jaitley to discuss issues related to inflation and price rise of essential commodities.
"The meeting also reviewed the steady increase in the retail price of milk and took a decision to consider withholding export incentives currently in force," the Ministry of Consumer Affairs, Food & Public Distribution said in a statement.
Among others, government provides incentives on exports on skimmed milk products under Vishesh Krishi and Gram Udyog Yojana (VKGUY).
The meeting to discuss steps to deal with the price rise was attended by among others Food Minister Ramvilas Paswan.
Recently, all major milk producers including Mother Dairy and Amul have raised milk prices by Rs 2 per litre across all variants due to increase in procurement costs.
Annual retail inflation in milk and its products in May was 11.28 per cent.
Milk production is estimated to have increased by 6 per cent to about 140 million tonnes in 2013-14 fiscal.
Milk production in India, the world's largest producer and consumer, stood at 132.4 million tonnes 2012-13, as per National Dairy Development Board (NDDB) data.
