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An increasing demand and inadequate local production are fueling the growing powder milk import in Bangladesh, traders say.
Meanwhile, a rise in milk prices on the international market has affected the local market too, forcing people to bear the brunt at a time when the costs of essential commodities are going through the roof.
Traders say around 80 per cent of the country’s demand for powder milk is met through import. The item is used in making infant formula, confectionery such as chocolate and caramel candy, and ice-cream and sweet, among others.
Farmers produced 1.20 crore tonnes of milk last fiscal year, up from 1.07 crore tonnes a year ago, according to the Department of Livestock Services. But the country’s annual demand is 1.55 crore tonnes.
In the retail markets, a kg branded milk powder costs Tk 580-690. The prices have increased by Tk 20-60 per kg compared to the same period the year before.
Wholesalers at Dhaka’s Moulvibazar said, they bought powder milk at TK 7,000-8,000 per 25kg bag 15 days ago but now they have to pay Tk 10,000-14,000 for the same quantity.
Moulvibazar Traders Association President Bashir Uddin said around 80 per cent market demand for the powder milk is met by import. “The item is imported from countries including India and Russia. A price hike on the international market affected the local market,” he said.
Importers bring milk powder in 50 or 25 kg bags. According to Global Dairy Trade, a milk market price website, whole milk powder price hit $4,757 per ton in March 2022, a 9 per cent increase compared to the same period
last year.
Milk powder import hit 66,454 tonnes between July and December 2021, a 16.25 per cent increase compared to the same period the year before, data from the Bangladesh Bureau of Statistics show. The import increased by 13 per cent in December compared to November 2021. Country’s milk powder import was 1.38 lakh tonnes in FY 2020-21.
Bangladesh imported powdered and solid milk products worth $365.87 million in 2019, according to International Trade Center.
Bangladesh Dairy Farmers Association General Secretary Imran Ahmed said they did not receive adequate attention from the government. “Production costs are very high in our country due to high feed prices. As a result, production has not increased to the extent meeting our demand, and import dependency has increased. There are many countries’ including India, gives subsidy to their farmers for milk production and marketing.
We are campaign to increase milk consumption of our country. We have been urging people for drinking every day one glass of milk, he added.
