Following several indications throughout the past two weeks that India could potentially turn to the international market to source butter and clarified butter (ghee/anhydrous milk fat (AMF)), the Indian government announced on Friday 14th April that there is no intention to source dairy commodities from international markets.
Parshottam Rupala, the Cabinet Minister of Fisheries, Animal Husbandry, and Dairying, stated on Friday, “there is no truth in it [shortage of dairy products]. No import will take place. The demand has increased. We have huge untapped area; we will try to tap that. We will manage it properly and there is no need to worry.”
Concerns surrounding the dairy supply on the Indian market rose after the Indian Animal Husbandry and Dairy Secretary announced that the demand for dairy products grew 8-10% during the last milk season. Production was stagnant in the last milk season, negatively impacted by lumpy skin disease, reducing milk production. According to government sources, milk production during the 2022-2023 season was reportedly flat compared to the 2021-2022 season, which closed at 221 million tonnes.
Following the statement, nervousness within the dairy market fell slightly, even though several market sources stated that some uncertainty remained. One market source commented, “the waves have softened since the announcement of the Indian government not to import dairy products. However, we don’t really know what the minister refers to with the ‘huge untapped area’.”