An oversupply of skimmed milk powder has caused a steep fall in the prices on the international market – a situation that has led to Gujarat government announcing a bailout package of Rs 300 crore for GCMMF and other milk cooperatives to facilitate their export of skimmed milk powder, media reports say.
The government decision came after GCMMF Chairman Ramsinh Parmar, VC Jetha Bharwad, MD RS Sodhi and officials of other milk cooperatives met with CM Vijay Rupani and Nitin Patel over the crisis and sought the government help.
This decision could facilitate exports of 60,000 metric tonnes worth of milk powder leading to more liquidity that is likely to benefit 36 lakh dairy farmers in the state, sources say.
Unsold milk powder stock worth Rs 2,500 crore and 1,10,000 metric tonne is currently with cooperative societies as rates in international markets have plummeted.
