FINANCIAL EXPRESS

Importing milk to cut prices.- is .actually a very bad idea: Amul's RS Sodhi INTERVIEW By: Prachi Gupta I Updated: January 2, 20204: 14: 11 PM

While importing milk may decrease milk prices for the time being , the same will result

into a monopoly of foreign players such as New Zealand and Australia . Amul MD

explains why importing is a bad idea.

RS Sod hi, m ana(; ing di rector, G ujarat Cooperative Milk Marketing Federat ion (G CMMF), Amul.

Indian dairy industry has been wary of the entry of foreign players and the country

even decided to pull out of the RCEP deal after facing protests from the dairy

players. While importing mi lk may decrease milk prices for the time being , the same

will result into a monopoly of foreign players such as New Zealand and Australia , RS

Sodhi , managing director, Amul , told Financial Express Online in an interview. He

alsa talked abaut why the recent milk price hike is not much, India's self-sufficiency

in praducing milk and how Indian farmers will suffer if the country allows imparts.

Edited excerpts:

Are dairy players looking to hike milk prices again?

In the last 3 years , milk prices have increased by only Rs 4 per litre and in the last 5

years , prices have increased by .only Rs 8 per litre. This is less than 3% which is

below foad inflation and retail inflatian .

Immediately, we have no plans of hiking prices again .

What about the dairy players' meeting with the government?

We meet the gavernment every 2 manths ta discuss the dairy industry and how to

increase milk praduction in India. We dan 't merely discuss price hike in the meeting .

Issues such as consumptian , feeding practices, milk inflow and growth and what ta

do in the future are discussed . This is not to decide or convey any price hike. It has

been a regular exercise for 15 years .

In dairy, farmers have started to get remunerative prices after 3 years and they are

encauraged to produce more. If farmers don't get prices, they will exit the dairy

sectar. In fact, yaung farmers are nat interested in dairy. Then we depend an

imparts.

Does it not make sense to import more if the country is producing less? There

is some news about India witnessing a sluggish flush period in 2019.

The flush season starts after Diwali. Diwali was one month early last year. The flush

season has started in December. Every day, we are getting 60 lakh litres mare milk

than the summer season . The seasan has just started and will continue till April. The

delay happened because of extended monsoon. But, there is plenty of milk. Import

should happe.n when there is a scarcity .of milk.

What about the Skimmed Milk Powder?

Some milk processors were used ta getting cheap milk pawder because same

people started desperate selling of Skimmed Milk Pawder (SMP) last year. The cost

was Rs 250-260 per kg , they sold it at Rs 150 per kg . They were selling it on loss

because the stock was in plenty.

This will not continue. The Skimmed Milk used to sell for Rs 250 per kg in 2014-15 .

Now it sells for Rs 300 per kg . In the last 4-5 years , the powder rate has only

increased by Rs 40-50 per kg. This is not much.

You should either think of the farmer or the consumer's welfare. Farmers should get

good prices for their produce so that he is encouraged to produce more or we will be

dependent on imports. Consumers should also get products at the right price. 3%

inflation is not much.

Certain sections of society might still not be able to afford milk. Won't imports

make milk cheaper for them?

Imports won't be cheap. This will be a short-term thing . The day we start importing,

Indian price will decrease. Farmers will stop producing, we will get dependent on

imports. What will 10 crore farmers do? What will happen to the livelihood? This will

become a monopoly of the foreign players. It will only help multinationals and big

processors who will import and sell milk in India. India will become dependent on

imports like we are dependent on· edible oil. Till the 90s, we were more or less self­

sufficient in edible oil. Now, 70% of our consumption is imported. The milk market is

7-8 times bigger than the edible oil industry.