CM’s sensitive decision in the wider interest of milk producers-cattle breeders of the state

CM’s sensitive decision in the wider interest of milk producers-cattle breeders of the state
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State Government to provide export assistance of Rs. 50 per kg to Gujarat Milk Marketing Federation for Skimmed Milk Powder export

Freight on Board (FOB) price increased from Rs. 180 to Rs 200 per kg

Gandhinagar (Gujarat): Chief Minister Mr. Vijay Rupani has decided to increase the export assistance of the State Government to Gujarat Milk Marketing Federation for the export of Skimmed Milk Powder.

Responding favourably to the presentation made by Gujarat Co-operative Milk Marketing Federation before the Chief Minister in this regard, the CM has now decided to give FOB Rs. 200 per kg instead of Rs. 180.

In the wider interest of the state’s cattle breeders, the state government has sanctioned such export assistance to Milk Unions to offset the financial loss incurred in Skimmed Milk Powder in international markets.

According to this provision, for export of skimmed milk powder, maximum of Rs. 50 export assistance per kg for a period of 6 months up to the limit of Rs. 150 crore was sanctioned.

The State Milk Unions, in a presentation to Chief Minister Mr. Vijay Rupani, requested this year to increase the FOB (Freight on Board) from Rs. 180 to Rs. 200 per kg and also to extend the scheme period.

Accordingly, the Chief Minister has approved the assistance of Rs. 50 per kg for 6 months from 1st July 2021 to 31st December 2021. Not only that, he has decided to give FOB price as per Rs. 200 along with transport cost.

The Chief Minister also added that if the FOB price of Skimmed Milk Powder increases, the amount of export assistance equal to the increased amount will be reduced.That is, if the FOB price increases from Rs. 200 to Rs. 210, the export assistance will reduce from Rs. 50 to Rs. 40.

If the FOB price decreases, the export assistance will remain same i.e., Rs. 50 per kg. CM has also decided to approve this entire scheme within the financial limit of Rs. 150 crores.

As a result of this decision of the Chief Minister, the cattle breeders will be able to compensate the loss caused by fluctuations in the price of Skimmed Milk Powder in international markets, allowing some financial relief to them.

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