Maharashtra-based private dairy player Parag Milk Foods is in race with Gujarat-based dairy cooperative Gujarat Cooperative Milk Marketing Federation (GCMMF) to start exports to Russia. According to Parag, while the Russian authorities have inspected a few Indian dairy players, they have approved around two players in the last five months, reports Business Standard.
Earlier in January, GCMMF which sells milk and dairy products under the Amul brand, had said it is awaiting formalities between the Export Inspection Council of India, and its Russian counterparts to complete, so that it could begin exporting.
The Russian market has a vast potential for dairy business, the country imports nearly 500,000 tonnes of milk products every year. Parag especially is interested in exporting cheese to Russia.
Parag currently exports to more than 30 countries including Philippines, UAE, Singapore, Oman, Kuwait, New Zealand, Sri Lanka. A source is quoted as saying its exports have grown by 100 per cent over FY14. Parag had clocked a turnover of around Rs 1400 crore in FY14, of which about 20 per cent came from exports.
The opening of the Russian market is critical for dairy players facing a pressure on margins owing to lower exports thanks to low prices. Asian countries like Korea, Japan, Taiwan, apart from West Asia and North Africa import from India.