and Milk Product Order (MMPO) 1992
The Milk and Milk Product Order (MMPO), 1992, issued
on June 9, 1992 seeks to ensure the supply of liquid milk, an essential
commodity, to consumers by regulating its processing and distribution.
Within eight years of its operation, the Central/State Registering
Authorities have till December 2000 registered 666 units with a
total processing capacity of 65.8 million litres per day (mlpd).
Salient Features of the MMPO Order include the following:
-- Registrations for units handling up to 75,000 litres of milk
per day are granted by the State Governments and units with more
than 75,000 litres per day capacity are registered by the Central
-- The Certificate also specifies the milkshed area, which, under
the order is defined as a geographical area demarcated by the Registering
Authority for the collection of milk by the registered unit.
-- Maintenance of specified hygienic conditions in the premises
where milk and milk products are handled, processed, manufactured
The collection, transportation and processing of
milk normally centres around the operations of a processing plant.
The region from which the marketable surplus of milk production
finds its way to a processing plant is called a 'milkshed'. The
concept of milkshed areas is pivotal to the MMPO. For an orderly
development of the dairy industry, a proper assignment/allocation
of milkshed is critical.
The dairy industry is regulated in most countries
through various ways. Many subsidise part or whole of domestic production.
Imports are commonly restricted, and exports frequently subsidised.
High dairy price supports in many countries are put in place to
stimulate production to the extent that subsidies for exports are
necessitated to maintain domestic dairy programmes.
In the United Kingdom, all the milk produced by farmers is procured
by the cooperatives. Private dairies are required to buy their milk
requirement from cooperatives. New Zealand has no private sector
dairy plants. As many as 90 per cent of dairies in the erstwhile
West Germany and 100 per cent in Denmark, Netherlands and Sweden
are in the cooperative sector.
In the United States, 70 per cent of the dairy industry is cooperative.
Dairy programmes are subject to more Government participation or
regulation than most other domestic agricultural industries in the
USA. There are also Federal Milk Marketing Orders and movement barriers
in the USA for "orderly marketing control, which is associated with
stabilising fluid milk prices, providing secured and dependable
markets for individual farmers producing milk primarily for the
fluid market and improving the balance of market power between farmers
In the emerging liberalised global scenario, trade-distorting agricultural
policies have been the focus of the GATT multilateral trade negotiations.
With the liberalisation of agricultural trade under the new GATT
regime, the heavy subsidies prevalent in the dairy sector in the
countries of the EU as well as in the USA will have to be brought
down in the next few years. The competitive advantages of the Indian
dairy industry are then considered to be substantial. With substantial
and continued investment in building up milk production, India can
emerge as a major exporter of dairy products in the next few decades.
on Weights and Measures (Packaged Commodities) Rules, 1977
These Rules lay down certain obligatory conditions
for all commodities that are packed form, with respect to declarations
on quantities contained. These Rules are operated by the Directorate
of Weights and Measures, under the Ministry of Food and Civil Supplies.
(Quality Control & Inspection) Act, 1963
The Export Inspection Council is responsible for
the operation of this Act. Under the Act, a large number of exportable
commodities have been notified for compulsory pre-shipment inspection.
The quality control and inspection of various export products is
administered through a network of more than fifty offices located
around major production centres and ports of shipment. In addition,
organizations may be recognized as agencies for inspection and /or
quality control. Recently, the government has exempted agriculture
and food products, fruit products and fish and fishery products
from compulsory pre-shipment inspections, provided that the exporter
has a firm letter from the overseas buyer stating that the overseas
buyer does not require pre-shipment inspection from official Indian
No Objection Certificate from Pollution Control
Board is a must.
There are two organizations that deal with voluntary
standardization and certification systems in the food sector. The Bureau of Indian
Standards looks after standardization of processed foods and standardization of raw
agricultural produce is under the purview of the Directorate of Marketing and Inspection.
Bureau of Indian Standards (BIS)
The activities of BIS are two fold, the formulation of Indian standards
in the processed foods sector and the implementation of standards through promotion and
through voluntary and third party certification systems. BIS has on record, standards for
most of processed foods. In general, these standards cover raw materials permitted and
their quality parameters, hygienic conditions under which products are manufactured and
packaging and labelling requirements. Manufacturers complying with standards laid down by
the BIS can obtain and "ISI" mark that can be exhibited on product packages. BIS
has identified certain items like food colours/additives, vanaspati, containers for
packing, milk powder and condensed milk, for compulsory certification.
Directorate of Marketing and Inspection (DMI)
The DMI enforces the Agricultural Products (Grading and Marketing) Act,
1937. Under this Act, Grade Standards are prescribed for agricultural and allied
commodities. These are known as "Agmark" Standards. Grading under the provisions
of this Act is voluntary. Manufacturers who comply with standard laid down by DMI are
allowed to use "Agmark" labels on their products.
Other Government Regulations