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India's milk imports soar as disease hits local cattle stock - Stock Market Latest

Reuters was the first to reveal that India’s milk product imports are rising and the country is planning to allow duty-free imports. Milk prices in the world’s biggest producer have risen at their fastest rate in a decade, reaching a record high due to lumpy skin disease in cows and a drawdown in market-ready cattle stock after the coronavirus pandemic slowed breeding. Additionally, Reuters reported that consumption of dairy products has been rising rapidly, despite the stagnation in milk supplies. A day later, a senior government official confirmed the Reuters report in a press conference. 

Market Impact

Milk prices have already jumped more than 15% to 56 rupees ($0.68) a litre over the past year – the fastest rise in a decade – making it difficult for the government to bring retail inflation below the central bank’s target. India’s SMP imports are likely to hit an all-time high in the fiscal year that started April, surpassing record purchases in 2011-12, dairy industry officials said. In January, India’s milk and cream imports jumped 1,024% from the last year to $4.87 million, even with import taxes, as dairies increased purchases from France, Germany and Poland.

Article Tags

Type: Reuters Best

Sectors: Economy & Policy

Regions: Asia

Countries: India

Win Types: Speed

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Significant National Story

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