India: A Global Dairy Powerhouse

India remains a dominant force in the international dairy sector, accounting for over 24% of the world's total milk supply. The country's extensive livestock population includes approximately 192 million dairy cattle and 135 million dairy goats, reinforcing its leadership in dairy production.

Milk Production and Processing

In the fiscal year 2023-2024, India achieved a remarkable milk production volume of 239.3 million tonnes, which increased to 248 million tonnes by 2024-25. This solidified India's position as the world's largest milk producer. The processing sector manages between 65 to 70 million tonnes annually, producing significant quantities of dairy products, including 90,000 tonnes of cheese and approximately 600,000 tonnes each of milk powder and whey.

Key Dairy Enterprises

Key players in the Indian dairy market include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India. Notable market movements include Milky Mist's planned IPO valued at ₹20,000 crore and Mother Dairy's projected turnover reaching ₹17,000 crore by FY 2025.

Trade Dynamics

India exports around 100,000 tonnes of dairy products annually and imports approximately 50,000 tonnes. High tariffs protect the industry, influencing export-import dynamics. Notably, India's mozzarella exports have surged, marking significant growth in the global mozzarella trade.

Regional Contributions and Challenges

Gujarat contributed 18.31 million metric tonnes in 2024, while Karnataka's daily milk collection reached 1.06 crore litres. Punjab faces financial strains from falling 'toori' prices, and the re-emergence of Lumpy Skin Disease poses challenges. In Kerala, rising production costs outpace milk prices, threatening dairy farming sustainability.

Technological and Sustainability Advancements

A ₹90-crore high-tech dairy plant in Namakkal is nearing completion, set to benefit over 15,000 farmers. Delhi's new biogas plant processes 200 tonnes of waste daily, and Amul's ₹10,000 crore investment aims to expand processing and distribution capabilities, supported by changes in GST rates on dairy products, boosting rural incomes.

Strategic Developments

Nestlé India's $600 million expansion with a new factory in Odisha significantly enhances production capabilities. The Union Home Minister inaugurated the Sabar Dairy Plant in Rohtak, Haryana, to distribute dairy products throughout the Delhi–National Capital Region.

Modernization Efforts

Himachal Pradesh is modernizing its dairy sector with the Dhagwar Milk Plant, part of a broader transformation incorporating technology and efficiency to empower producers and create value.

Investment Opportunities and Infrastructure

Haryana's 'Go Global' approach invites international investments, leveraging its infrastructure and skilled workforce. A new Central Veterinary Hospital in Srinagar is under construction, enhancing veterinary services for livestock and dairy farmers in Jammu and Kashmir.

International Trade Developments

India is nearing a trade agreement with the United States, including limited openings for US dairy products, adhering to stringent safety and regulatory standards.

Empowering Women and Recognitions

The Indira Mahila Dairy Scheme aims to foster women's entrepreneurship, elevate household incomes, and build a resilient community-based dairy ecosystem in Madhira, India. Milma, a prominent cooperative brand, was recognized as India's Best Milk Brand at the Metro Food Awards, showcasing its commitment to quality.

Leadership Changes

Mother Dairy is experiencing a leadership change with the resignation of Managing Director Manish Bandlish. The company is owned by the National Dairy Development Board.

Financial Commitments and Initiatives

The Tamil Nadu government has financial commitments to milk producers, promising a subsidy to cover losses due to reduced milk prices by Aavin. Pending incentives amounting to ₹215 crore are affecting the financial stability of local milk producers. NDDB is establishing a solar-powered dairy processing plant in Kargil, India, to supply fresh milk to Indian Army personnel stationed in high-altitude regions.

Infrastructure Expansion

India's dairy sector is set for a major boost with the expansion of the Dairy Plant Project in Madhavaram, part of a broader strategy to expand infrastructure and ensure stable supply chains.

Regional Challenges

Bihar faces a significant protein deficit due to inadequate dairy and meat production, impacting rural producers and raising consumer prices in urban areas. In Goa, the price of full cream milk has soared to Rs 70 per liter due to increased input costs, affecting farm profitability.

Policy and Financial Implications

India's potential reinstatement of the US GSP status could unlock over $1 billion in duty-free agricultural exports, potentially reducing tariffs and enhancing trade relations. Nestlé India faces a ₹1.8 crore GST demand impacting the dairy sector, which could have significant implications for multinational agribusinesses operating in India.

Innovation in Biogas

Suzuki Motor Corporation has launched its inaugural biogas production facility in Gujarat, India. The plant, located in Agthala, Banaskantha district, is designed to generate 1.5 tons of compressed biogas daily from up to 100 tons of cow dung.

Fraud Investigation

The Enforcement Directorate conducted searches at five locations in Maharashtra related to a Rs 108.30 crore fraud in the dairy sector. India's frozen desserts market is witnessing competition between Hindustan Unilever Limited (HUL) and the domestic cooperative giant, Amul.

International Collaborations

India and Brazil have embarked on a strategic partnership in the field of dairy cattle and buffalo genomics. The collaboration aims to establish a state-of-the-art Cattle and Buffalo Genomics Laboratory in India, integrating Brazil’s advanced genomic technologies with India’s extensive dairy population. The initial phase of the program will be implemented in Uttar Pradesh, India’s largest milk-producing state.

Expansion in Telangana

The Telangana Dairy Development Cooperative Federation Ltd plans to boost milk procurement from 4.4 lakh to 6 lakh litres daily, significantly expanding its Vijaya Dairy parlour network over the next few years.

Enhancing Milk Yields and Animal Health

Manka Pashu Aahar is designed to boost productivity in the Indian dairy sector, enhancing milk production and promoting livestock health. The project aims to convert cattle dung into biofuel, providing a new revenue stream for local farmers and supporting India's green energy initiatives.

Nutrition and Product Development

Godrej Jersey has launched affordable high-protein paneer to tackle nutrition deficiency in India. India is facing significant protein deficiency, with 73% of the population consuming less than the recommended daily intake according to ICMR–NIN guidelines.

Free Trade Agreements

India's free trade agreement with New Zealand includes limited dairy trade liberalization. The agreement includes only a few protein products and those exported to India for re-export, leaving major tariff issues unresolved.

Dairy Infrastructure in West Bengal

West Bengal has inaugurated a 1.5 lakh litre per day dairy processing facility in Nadia, branded under 'Banglar Dairy'. This strategic investment aims to enhance milk processing, support farmer incomes, and boost rural employment.

India is leveraging its dairy sector to promote biogas as a renewable energy source. The National Dairy Development Board is leading these efforts with a focus on small and marginal dairy farmers, promoting sustainable prosperity through cooperative-led models.

Digital Transformation

India's dairy industry, contributing significantly to the country's agricultural GDP, is on the verge of a digital overhaul. The integration of IoT and AI can revolutionize how milk is produced, processed, and distributed, offering substantial benefits to farmers and improving product quality.

Modified: 2026/01/05

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