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, which drive 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.
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.
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.
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.
Additional Regional Insights
Dodla Dairy operates extensively across India, with procurement in 8 states, products available in 15 states, and a network of 236 milk chilling centers/plants. India is negotiating a free trade agreement with New Zealand, focusing on agri-tech and dairy market access.
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.
Investment and Innovation
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.
New Product Launches and Market Trends
Britannia Industries Limited has announced its entry into the ready-to-drink protein beverage segment in India. This move signifies a transformative shift for India's dairy industry, as traditional brands leverage health and wellness trends to explore new value streams in the post-pandemic era.
International Trade Developments
India is nearing a trade agreement with the United States that includes limited openings for US dairy products. India has agreed to allow limited imports of select US dairy products, adhering to stringent safety and regulatory standards. The imported corn is intended to bolster India's ethanol production, aligning with the country's national biofuel objectives.
Tamil Nadu's Dairy Training Program
Aims to boost rural employment through a 25-day dairy training program equipping rural youth with skills in modern dairy management, targeting economic uplift through entrepreneurship. The initiative focuses on clean milk production and modern farm technologies.
Heritage Foods
Heritage Foods is a prominent player in the Indian dairy industry. The company operates across 16 states and has grown significantly since its inception.
Banas Dairy Recognized for Leading Water Conservation Efforts
Banas Dairy, located in Palanpur, has been awarded the National Water Award for its industrial unit. The dairy's efforts in water conservation have significantly contributed to groundwater recharge and sustainable agriculture in Gujarat.
Akshayakalpa Organic
Akshayakalpa Organic, a leading organic dairy company in India, is expanding its operations in India, particularly in Mumbai and Pune, and is focusing on high-protein products and ragi-based snacks.
India's Farm Exports
India's agricultural exports provided a significant boost to the nation's trade performance in October 2025, despite a trade deficit. Notable growth was seen in exports of meat, dairy, and poultry products, with a rise by 30.87% to USD 584.5 million, attributed to stable demand from markets in West Asia and parts of Southeast Asia.
Punjab's Mobile Fleet for Milk Testing
The Punjab government has introduced a mobile fleet for on-the-spot milk testing. This initiative, which started in Ludhiana, is part of a broader effort to address the pervasive issue of dairy adulteration in the region.
The Northeast region of India is targeting self-reliance in milk, egg, fish, and meat production by 2030. Northeast India is working towards self-sufficiency in dairy and livestock by 2030 under a new plan by a High-Level Task Force.
Modified: 2025/11/24