India's Dairy Industry Overview
India stands as the largest milk producer globally, contributing more than 24% to the world's total milk production. The country boasts a substantial livestock base, comprising approximately 192 million dairy cattle and 135 million dairy goats, which are essential to its significant dairy output.
Milk Production and Processing
In the fiscal year 2023-2024, India achieved an impressive annual milk production of 239.3 million tonnes. The milk processing sector is well-developed, handling between 65 to 70 million tonnes annually. Cheese production is a notable segment, with an output of around 90,000 tonnes. Additionally, India produces approximately 600,000 tonnes of milk powder and whey each year.
Key Dairy Enterprises
The Indian dairy market is dominated by major enterprises such as Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India. Other significant players include Baramati Agro Ltd., Hatsun Agro Product Ltd., Karnataka Milk Federation, Heritage Foods, and Vijay Dairy & Farm Products.
Exports and Imports
India exports around 100,000 tonnes of dairy products annually while importing approximately 50,000 tonnes. This reflects India's strategic positioning and relative self-sufficiency in dairy production.
Significant Market Events
Several key events are shaping the Indian dairy market. Milky Mist is planning an IPO valued at ₹20,000 crore, and Mother Dairy aims for a turnover of ₹17,000 crore by FY 2025. Parag Milk Foods reported a 27% profit increase in ghee and cheese production, and Yakult Danone India launched 'Yakult Light Mango' with a target of 50% sales growth. The World Dairy Summit 2027 will be hosted in India, underscoring its global significance. Additionally, ongoing EU trade negotiations focus on dairy market access, and India continues to exclude dairy from recent FTAs, highlighting a complex trade landscape.
Future Outlook
The future of India's dairy market is centered 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 the implementation of biogas models in 250 cooperative districts. Despite geopolitical tensions, India remains a leader in milk production, focusing on technological modernization, value-added product development, and export diversification. Innovations like Danone India's DEXOGROW, targeting childhood iron deficiency, and Bharat Biotech's Biolumpivaxin vaccine for Lumpy Skin Disease, emphasize health and nutrition. New facilities, such as the Gomati Dairy unit in Tripura and Amul Dairy's upcoming plant in Assam, aim to boost regional production and empower local economies. Furthermore, Amul has launched its fresh milk products in Spain through a partnership with Spain's prominent dairy cooperative COVAP, marking its entry into the European market.
Regional Contributions
Gujarat is a notable contributor to India's total milk output, producing 18.31 million metric tonnes in 2024. Karnataka also plays a key role as a leading milk-producing state, with the Karnataka Milk Federation (KMF) setting a new benchmark by collecting 1.06 crore litres of milk in a single day.
Leadership and Innovation in Dairy
Parag Milk Foods, a prominent Indian dairy and nutrition-focused FMCG company, has announced the appointment of Amitabh Mukhopadhyay and Milind Anil Patil as independent directors to its board. These changes signify the company's focus on strengthening its leadership to drive future growth.
The Chief Minister of Jharkhand inaugurated a new milk powder plant aimed at enhancing the dairy sector and supporting rural livelihoods in the state. On June 6, 2025, in Anand, Shri Hemant Soren, the Hon'ble Chief Minister of Jharkhand, inaugurated a new 20 MTPD milk powder plant at Medha Dairy in Ranchi. The plant, part of Jharkhand State Cooperative Milk Producers’ Federation Ltd. (JMF) and managed by the NDDB, is a key step towards promoting self-reliance in the state's dairy sector.
Modified: 2025/05/18