India: A Global Dairy Powerhouse

India stands as a leader in the global dairy industry, contributing over 24% to the world's total milk supply. This leadership position is supported by a vast livestock population, with approximately 192 million dairy cattle and 135 million dairy goats, solidifying its role in dairy production.

Milk Production and Processing

For the fiscal year 2023-2024, India recorded a milk production volume of 239.3 million tonnes, which increased to 248 million tonnes by 2024-25. The processing sector manages between 65 to 70 million tonnes annually, producing large quantities of dairy products, including 90,000 tonnes of cheese and about 600,000 tonnes each of milk powder and whey.

Key Dairy Enterprises

Major players in the Indian dairy market include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India. Noteworthy market movements feature Milky Mist's intended 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 while importing approximately 50,000 tonnes. The industry is protected by high tariffs, which significantly influence its export-import dynamics. A notable development is the surge in India's mozzarella exports.

Regional Contributions and Challenges

In 2024, Gujarat contributed 18.31 million metric tonnes, while Karnataka collected 1.06 crore litres of milk daily. Punjab faces financial challenges due to declining 'toori' prices, and the resurgence of Lumpy Skin Disease presents additional hurdles. In Kerala, increasing production costs threaten the sustainability of dairy farming.

Technological and Sustainability Advancements

A ₹90-crore high-tech dairy plant in Namakkal is nearing completion, benefiting over 15,000 farmers. Delhi's new biogas plant processes 200 tonnes of waste daily, while Amul's ₹10,000 crore investment aims to expand processing and distribution capabilities.

Strategic Developments

Nestlé India's $600 million expansion with a new factory in Odisha significantly boosts 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, incorporating technology and efficiency to empower producers and create value.

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.

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. 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. 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.

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.

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.

Nutrition and Product Development

Godrej Jersey has launched affordable high-protein paneer to tackle nutrition deficiency in India. India faces 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.

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.

Digital Transformation

India's dairy industry 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.

Market Challenges

India's dairy industry is experiencing a tightening of milk supply and rising procurement costs. Geopolitical tensions disrupted production patterns in 2025, particularly affecting northern milk-producing regions.

Amar Dairy's Expansion Plans

Amar Dairy aims to expand its presence across India, offering doorstep delivery of high-quality, natural dairy products.

Dodla Dairy's VAP Sector Growth

Dodla Dairy is focused on India for its Value-Added Products (VAP) sector, expecting a revenue CAGR of over 15% through the fiscal years 2025 to 2028.

Fake Paneer Scam

A major counterfeit paneer operation in Bihar has surfaced, selling paneer normally priced at ₹400 for just ₹80. This has triggered significant concerns over food safety and dairy adulteration in the region.

The Himachal Pradesh Government Enhances Support for Dairy Farmers

The Chief Minister of Himachal Pradesh announced measures to support dairy farmers, including increasing the Minimum Support Price for cow and buffalo milk.

Delayed Payments and Price Cuts

Approximately four lakh dairy farmers in Tamil Nadu face financial strain due to unpaid incentives promised by the government, with the state owing over ₹200 crore in incentives.

The Thalavady Farmers Association's Request

The Indian government is urged to exclude agriculture and dairy from the proposed India-U.S. Free Trade Agreement.

India's Dairy Sector Evolution

India's dairy sector is evolving from traditional liquid milk towards probiotics and fortified products, supporting research-led growth and enhancing collaboration between academia and industry.

The Karnataka Milk Federation's Sponsorship Ambitions

KMF, which markets the Nandini dairy brand, is seeking to enhance its national presence in India through a sponsorship deal with the IPL team Royal Challengers Bengaluru.

Mother Dairy Faces Scrutiny Over Early Milk Spoilage

The incident raises concerns about quality checks and cold-chain management in the Indian dairy sector.

Stable Force in Rural Economies

The dairy sector remains a stabilizing force for rural households in India, providing a buffer against climate volatility and market uncertainty.

AgriTech and DairyTech Innovations

A prominent player in agritech and dairy-tech sectors, ADIS is enhancing India's dairy sector by digitizing livestock identification and expanding rural insurance coverage.

Risks from Aflatoxin Contamination

Indian dairy supply chains face growing risks from aflatoxin contamination. Veterinary and food safety scientists have raised alarms about the increasing risk of aflatoxin contamination in India's dairy industry.

Regulatory Oversight

The Indian dairy industry is experiencing heightened regulatory oversight, focusing on product integrity, accurate labeling, and process compliance.

Research and Development

The collaboration between ICAR and NDDB is set to enhance India's dairy research landscape by integrating laboratory findings with on-farm practices across the nation.

Provilac's High-Protein Fresh Milk

Provilac has launched India's first high-protein fresh milk, aiming to address protein deficiency, especially within vegetarian diets.

New High-Tech Dairy Plant in Namakkal

A new high-tech dairy plant in Namakkal district, Tamil Nadu, is scheduled to begin operations in February, with an investment of ₹89.28 crore.

Challenges in India's Dairy Sector

The experience of Sid’s Farm highlights the broader challenges faced by fresh-food startups in India, with high fixed and variable costs presenting significant barriers to profitability.

NDDB CALF Food Testing Laboratory in Kerala

The NDDB CALF Food Testing Laboratory has been inaugurated in Kerala, marking a significant milestone for the state's dairy sector.

Nova Dairy's Summer Range

Nova Dairy introduced a summer range in India, including buttermilk, lassi, yogurt, and flavored milk, catering to the demand for hydration.

Amul Dairy's Financial Success

Amul Dairy, a leading cooperative in India, announced a turnover of Rs 14,099 crore and expanded its operations to several Indian states.

Hatsun Agro Product Ltd's Financial Results

Hatsun Agro Product Ltd reported a profit after tax of Rs 60.58 crore for the quarter ending December 31, 2025.

Government Crackdown on Tax Evasion

The Indian government is cracking down on tax evasion within the dairy sector, with recent efforts focusing on the Malani Dairy Group.

Sarhad Dairy's Focus on Camel Milk

Sarhad Dairy in Gujarat has become a key player in India's dairy sector, particularly focusing on camel milk production.

Anand, the Milk Capital of India

Join the global dairy community in Anand for a landmark event dedicated to the future of sheep, goat, camel, donkey, and other non-bovine milks.

Dvara KGFS has signed an MoU with Shri Baba Gorakhnath Kripaa Milk Producer Company in Uttar Pradesh. This partnership aims to empower women dairy farmers in Uttar Pradesh, India, by providing financial services to 44,000 women and supporting the monetization of approximately 80,000 litres of milk collected daily.

Mizoram has the lowest daily milk production in the Northeast. The NDDB will develop a Comprehensive Dairy Development Plan for Mizoram, providing technical support and assistance.

Ananda Dairy is expanding its presence across India. Ananda Dairy procures over 10 lakh litres of milk daily from more than three lakh farmers and operates five processing plants. The company's current footprint covers over 100 cities in 15 states, extending beyond its traditional base in western Uttar Pradesh.

Modified: 2026/01/25

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