India's Dairy Industry: A Comprehensive Overview

As the largest milk producer globally, India is a cornerstone of the international dairy market. The country supports its dairy industry with a substantial livestock base, including around 192 million dairy cattle, encompassing buffaloes, and about 135 million dairy goats.

Milk Production and Processing

In the fiscal year 2021-2022, India achieved an impressive milk production total of 208 million tonnes. The nation's processing capabilities are robust, managing between 65 to 70 million tonnes annually. Within this sector, cheese production is notable, with an annual output of approximately 90,000 tonnes. Additionally, India produces around 600,000 tonnes of milk powder and whey each year.

Key Dairy Enterprises

The Indian dairy market is predominantly led by major enterprises such as Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India.

Major Dairy Farms and Operators

Prominent dairy farms and operators include Baramati Agro Ltd., Hatsun Agro Product Ltd., Karnataka Milk Federation, Heritage Foods, and Vijay Dairy & Farm Products.

Exports and Imports

India exports approximately 100,000 tonnes of dairy products annually, while imports are around 50,000 tonnes. This highlights India's strategic position in the global dairy market and its relative self-sufficiency in production.

Significant Market Events

Milky Mist is planning an IPO valued at ₹20,000 crore.
Mother Dairy aims for a turnover of ₹17,000 crore by FY 2025.
Union Minister Amit Shah has addressed concerns regarding milk powder imports.
Fonterra is collaborating with Bangalore-based partners.
Parag Milk Foods reported a 27% profit increase in ghee and cheese production.
Yakult Danone India launched 'Yakult Light Mango', targeting a 50% sales growth.
Godrej Agrovet experienced a 28.3% profit surge in Q1.
The World Dairy Summit 2027 is set to be hosted in India.
Ongoing EU trade negotiations focus on dairy market access.
National Milk Day 2024 will be celebrated in New Delhi.
Kerala inaugurated its largest government-operated goat farm in Kasaragod.
Mother Dairy's partnership with National Cooperative Organics Limited was announced.
Arrests were made related to the Tirupati laddoo adulteration scandal.
Danone plans to increase its stake in Epigamia to 60%.
A seminar on 'Sustainable Dairy Farming and Innovations' was organized by CLFMA of India and Gokul Milk.

Future Outlook

The future of India's dairy market centers on expansion and sustainability. Noteworthy initiatives include the proposed world's largest curd manufacturing facility by the Gujarat Cooperative Milk Marketing Federation in Kolkata and biogas model implementations in 250 cooperative districts led by the National Dairy Development Board.

International trade negotiations, particularly with the US, remain critical for market stability. Geopolitical dynamics, including tensions with Pakistan, continue to influence broader market stability. The collaboration between the Ministry of Cooperation and Swiggy Instamart to bring cooperative dairy products online reflects India's shift towards digital integration and consumer accessibility.

Despite geopolitical tensions, India maintains its status as the world leader in milk production, focusing on technological modernization, value-added product development, and export diversification. Notably, Danone India launched DEXOGROW, a specialized milk drink targeting childhood iron deficiency, highlighting the industry's emphasis on health and nutrition. Bharat Biotech introduced Biolumpivaxin, a novel vaccine for controlling Lumpy Skin Disease in livestock.

A new Gomati Dairy unit in Tripura was inaugurated to enhance the state's dairy industry and rural economy. This unit is projected to play a crucial role in making Tripura self-reliant in milk and dairy product production, strengthening the rural economy, and empowering local farmers and dairy producers.

Growth in the dairy sector is driven by sheer demand and the need to modernize, making India one of the world’s largest yet most fragmented dairy sectors.

India and the United States are working towards finalizing a long-awaited trade deal, focusing on agricultural and dairy trade negotiations with emphasis on challenges related to US dairy imports and genetically modified crops.

Modified: 2025/05/18