India’s milk production seen rising to 129 million tonnes in 2012

Milk production in India is estimated to rise by around 5 per cent to 129 million tonnes in the current calendar year, from 123 million tonnes produced in 2011, a United States Department of Agriculture (USDA) report said on Friday.

USDA bases its projection on strong prices of milk and milk products amidst growing demand.

''Calendar year 2012 milk production is estimated at 129 million tonnes, 4.87 per cent up over CY 2011….CY 2011 fluid milk production is raised at 123 million tonnes, 1.23 per cent higher than previous estimates reflecting strong monsoon and good fodder availability,'' USDA said in its latest report.

USDA said production of non-fat dairy milk (NFDM) increased significantly in 2012 as milk prices turned remunerative and the government banned export of skimmed milk powder (SMP).

The government had, in February last year, imposed a ban on export of skimmed milk powder as milk prices in the country rose significantly, but had revoked the ban in June 2012 as supplies have stabilised.

India, which accounts for about 17 per cent of the world's total milk production and is also the least-cost producer in the world.