Skimming over milk

Policy makers should not overreact to the milk glut in India, since this has largely been caused by poorly advised government policy in the first place. The accumulation of surplus stocks of skimmed milk powder (SMP) is the consequence of the government’s two ill-timed decisions two years ago as a panicked reaction to the protein-driven high food inflation — banning the export of milk products and simultaneously ordering import of SMP.

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