India: A Global Dairy Powerhouse
India stands as a dominant force in the global dairy sector, contributing over 24% of the world’s total milk supply. The country boasts an extensive livestock base with approximately 192 million dairy cattle and 135 million dairy goats, making it a leader in dairy production.
Milk Production and Processing
During the fiscal year 2023-2024, India's milk production reached an impressive 239.3 million tonnes. The processing sector handles between 65 to 70 million tonnes annually, with key products including 90,000 tonnes of cheese and around 600,000 tonnes each of milk powder and whey.
Key Dairy Enterprises
Significant market players include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India, driving innovation and growth within India’s dairy economy.
Trade Dynamics
India exports approximately 100,000 tonnes of dairy products annually and imports around 50,000 tonnes. High tariffs protect local farmers and impact export-import dynamics, positioning the dairy industry as a key factor in the nation’s global trade agreements.
Noteworthy Market Events
Recent developments include Milky Mist's planned IPO valued at ₹20,000 crore and Mother Dairy's projected turnover of ₹17,000 crore by FY 2025. Additionally, Parag Milk Foods reported a 27% profit increase in ghee and cheese, while Yakult Danone India launched 'Yakult Light Mango,' aiming for a 50% sales boost.
Future Outlook
The Indian dairy market is on a growth trajectory, with plans for the world’s largest curd facility in Kolkata and biogas implementations in 250 districts. Focus areas include technological modernization, value-added products, and export diversification.
Regional Contributions and Challenges
Gujarat contributed 18.31 million metric tonnes in 2024, while Karnataka's daily collection reached 1.06 crore litres. Challenges include financial strains due to falling 'toori' prices in Punjab and the re-emergence of Lumpy Skin Disease.
Technological and Sustainability Advancements
A ₹90-crore high-tech dairy plant in Namakkal is nearing completion, benefiting over 15,000 farmers. The paneer market is evolving, driven by brands like Amul and Mother Dairy towards a ₹2 trillion market by 2033. Sustainability efforts include Delhi's new biogas plant processing 200 tonnes of waste daily.
Strategic Investments and Consumption Patterns
Amul's ₹10,000 crore investment plan aims to expand processing and distribution capabilities. Changes in GST rates on dairy products from 12% to 5% have shifted industry expectations, enhancing rural incomes through the Milk Producer Support Scheme.
Innovation and Industry Events
The First Indian Cheese Festival 2025 at the NDDB in Gujarat marked a significant event. The GST Council's tax reforms have made dairy products more affordable, aligning with GST 2.0 reforms during the festive season.
Environmental and Economic Challenges
Kerala faces a crisis with rising production costs outpacing milk prices, threatening the viability of dairy farming. Meanwhile, tax incentives are boosting domestic demand amid international trade pressures.
Strategic Developments
Nestlé India commits to a $600 million expansion with a new factory in Odisha, enhancing production capabilities significantly. Additionally, Union Home Minister Amit Shah inaugurated the Sabar Dairy Plant in Rohtak, Haryana, to distribute dairy products throughout the Delhi–National Capital Region.
Systemic Challenges
India's dairy sector is challenged by feed shortages, export bans, and infrastructure deficiencies, impacting its global competitiveness. The export ban on de-oiled rice bran (DORB) and high infrastructure costs in the poultry and egg sector are significant issues.
International Relations
India's influence and cooperative model are highlighted in Fiji through the launch of Amul Cow Ghee, symbolizing economic cooperation and community upliftment.
Food Safety Concerns
A significant portion of paneer in India has failed safety tests, with the Food Safety and Standards Authority of India (FSSAI) raising alarms over its safety 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, is recognized as India's Best Milk Brand at the Metro Food Awards, highlighting its commitment to quality in the competitive dairy industry.
Market Expansion Efforts
Despite the controversy, Gokul remains focused on financial growth and market expansion. This project marks a significant global partnership in dairy manufacturing, with specialist machinery sourced from IDMC in India.
Modernization Efforts
Himachal Pradesh is modernizing its dairy sector with the Dhagwar Milk Plant, part of India's broader transformation within the dairy sector, incorporating technology and efficiency to empower producers and create value.
Investment Opportunities and Infrastructure
Haryana is a state in India where the Danish delegation explored investment opportunities. Haryana's Chief Minister emphasized the state's 'Go Global' approach and invited Danish companies to leverage Haryana's infrastructure and skilled workforce. The government has laid the foundation for a new Central Veterinary Hospital in Srinagar, enhancing veterinary services for livestock and dairy farmers in Jammu and Kashmir. The Chief Minister of Himachal Pradesh is leading a strategic overhaul in the dairy sector, which includes new processing capacities, improved marketing strategies, and a major processing center in Kinnaur district aimed at serving both local populace and the Indian Army. Jalpak Foods is expanding its processing plant in India. The investment will support the expansion of their 200,000 LPD Malwa processing plant in India.
Modified: 2025/11/04