The Gujarat government on Wednesday announced Rs 300 crore export support for Gujarat Milk Marketing Federation (GCMMF) that markets products under brand Amul, to clear the huge inventory of skimmed milk powder (SMP) lying with it.

The announcement was made by deputy chief minister Nitin Patel. “The rate of SMP in the international market has come down and the demand of SMP prepared by the Amul too has gone down. This is directly affecting the interest of the farmers engaging in the cattle rearing in the state,” said Patel.

“Amul had requested assistance in the larger interest of farmers. So considering the interests of the cattle breeders, and farmers the government has agreed to give Rs300 crore support to GCMMF for SMP export. This means support of Rs 50 per kg of SMP exported,” he added.

Amul has stock of 1.10 lakh tonne SMP worth Rs 2,500 crore. As the funds have been blocked due to low off-take the interest burden has also increased.

GCMMF – the apex marketing body of all the district dairy unions of Gujarat welcomed Gujarat government’s decision to provide Rs 300 crore support for export of SMP.

The federation will get support of Rs 300 crore for exporting 60,000 tonnes of SMP in the next six months.

“It was for the first time that we (Amul) had sought state government’s help as there is nearly one lakh metric tonnes of milk powder inventory and in the world market prices of SMP have drastically fallen in the last four years,” said R S Sodhi, managing director of GCMMF.

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