Prices of powered milk in European markets and India have gone up by 200 dollars and 100 dollars per ton, respectively, during the last one month, following the season during which animals stop giving milk, importers said.
They said that the prices of dried milk from European shot up by 400 dollars a ton to 2,700 dollars per ton and of Indian milk also increased by 100 dollars a ton to 2,100 dollars per ton.
"Usually, prices of dried milk at the international front witness upsurge every year during this period," said founder-chairman of Pakistan Milk Powder Importers Association Abdul Rahim Janoo.
He said that the current season would continue till April and a declining trend could be observed during from April to October.
"This price hike is a routine affair," said Haroon Agar, a leading milk powder importer, adding that quantity of imported milk had not reduced and usual consignments are being received. "Since Indian rates are cheaper and affordable to us, we are importing milk powder from India," he added.
Importers said that dried milk import from India, started early last year, was gaining momentum, and some 1,500 tons has so far been imported. The price before the recent upsurge ranged from 1,900 dollars to 2,000 dollars per ton.
Importers said that average quality dry milk is being imported from India keeping in view the purchasing power of the common man.
Citing reasons for powdered milk price hike in international market, one importer said that agricultural commodities in European countries, especially dried milk, were getting 100 percent subsidy up to 2002, but it has now been reduced to 20 percent, which caused the prices to skyrocket.
The gurus of this trade said that different investors in India have set up thousands of big dairies and if the government reduces import duties sharply, the import process would expedite substantially.
"We are paying different duties and taxes to the government on import of dried milk, including six percent income tax and 25 percent import duty, and after the inclusion of all the aggregate duties and taxes, it stands at 36 percent," said another importer.
"Due to increased duties and taxes, the commodity becomes quite expensive when the consignments reach here, and in this situation we can not offer consumers any concession," he added.
Dried milk consumption in the country stands at 35,000 tons, while local production is just 10,000 tons, and this gap of 25,000 tons is to be filled by importing the commodity every year.
According to statistics, during 2004-05, around 12,300 tons dry milk was imported as against 9,750 tons during 2003-04.
Other than from India, the importers are also importing dried milk from Sweden, United Kingdom, Ireland, Holland, Ukraine and Czechoslovakia. However, skimmed milk powder (from which ice cream is prepared) is being imported mainly from Poland, Australia, New Zealand and India.