Overview of India's Dairy Industry
India is at the forefront of the global dairy industry, contributing over 24% to the world’s total milk supply. The country boasts a vast livestock base, with approximately 192 million dairy cattle and 135 million dairy goats. In the fiscal year 2023-2024, India's milk production reached 239.3 million tonnes, underscoring its role as a dairy powerhouse.
Milk Production and Processing
The Indian dairy processing sector is robust, handling between 65 to 70 million tonnes annually. Key dairy products include cheese, with a production volume of around 90,000 tonnes, and milk powder and whey, each contributing approximately 600,000 tonnes per year. This capacity ensures a steady supply to meet domestic demand.
Key Dairy Enterprises
Prominent players in the Indian dairy market include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India. Other significant contributors are Baramati Agro Ltd., Hatsun Agro Product Ltd., Karnataka Milk Federation, Heritage Foods, and Vijay Dairy & Farm Products. These companies are pivotal in maintaining the industry's growth and innovation.
Exports and Imports
India exports about 100,000 tonnes of dairy products annually while importing around 50,000 tonnes. Despite being a major producer, India maintains high tariffs to protect local farmers, affecting its export and import dynamics, highlighting its strategic position and self-sufficiency in dairy production.
Significant Market Events
Recent developments include Milky Mist's planned IPO valued at ₹20,000 crore and Mother Dairy's goal of achieving a turnover of ₹17,000 crore by FY 2025. Parag Milk Foods reported a 27% increase in profits from ghee and cheese production, while Yakult Danone India launched 'Yakult Light Mango', targeting a 50% sales growth. India is also set to host the World Dairy Summit in 2027.
Future Outlook
The Indian dairy market is set for expansion, with plans for the world’s largest curd manufacturing facility in Kolkata and biogas model implementation in 250 cooperative districts. Efforts are focused on technological modernization, value-added products, and export diversification.
Regional Contributions and Challenges
Gujarat significantly contributes with 18.31 million metric tonnes in 2024, while Karnataka is a leading producer, with the Karnataka Milk Federation collecting 1.06 crore litres in a single day. Challenges include financial strains due to falling 'toori' prices in Punjab and the re-emergence of Lumpy Skin Disease.
Trade and Policy Dynamics
India's trade strategy protects domestic farmers while negotiating tariff reductions for non-essential imports. The potential US-India trade deal could lower milk prices by 15%. India's stance on dairy tariffs has delayed agreements with Australia and others. The India-UK Free Trade Agreement is expected to boost agricultural exports by 20% in the next three years.
Technological Advancements
An advanced ₹90-crore high-technology dairy processing plant in Namakkal is nearing completion, expected to benefit over 15,000 dairy farmers. The paneer market is evolving, with major brands like Amul and Mother Dairy driving growth towards an estimated ₹2 trillion market by 2033.
Industry Appeals
The Indian dairy sector is appealing to reduce GST on ghee and butter from 12% to 5%, emphasizing the economic and cultural significance and impact on market fairness and rural livelihoods.
Strategic Investments
A massive strategic investment is powering India’s path to becoming a ‘Developed India’ by 2047, with the Union Cabinet approving a ₹2,000 crore grant to the NCDC, allowing it to raise an additional ₹20,000 crore for cooperatives.
Regional Initiatives
Jammu & Kashmir's Dairy Sector Reform is driven by a ₹1,433 crore initiative, while Rajasthan aims to solidify its position as India's second-largest milk producer. The Delhi Milk Scheme launches new cow milk products to expand its footprint in the NCR.
Consumption Patterns
India consumes most of its 239 million tonnes of annual production internally, integrating products like chai and paneer into daily diets. Although self-sufficient, India imports occasionally to meet peak demand, maintaining high tariffs to protect local farmers.
Food Safety Concerns
Authorities caution against food adulteration, urging consumers to purchase from reliable vendors. In August, Gujarat's FDCA seized 46 tonnes of adulterated and counterfeit food products through a series of raids.
Modified: 2025/09/04