India's Dairy Industry Overview

India is at the forefront of the global dairy industry, contributing over 24% to the world's total milk supply. The country supports a substantial livestock base, including approximately 192 million dairy cattle and 135 million dairy goats, which reinforces its position as a dairy powerhouse.

Milk Production and Processing

In the fiscal year 2023-2024, India's milk production reached an impressive 239.3 million tonnes. The country's 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.

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.

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, which affects its export and import dynamics.

Significant Market Events

Recent developments in the Indian dairy industry 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 poised 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.

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 and Strategic Investments

The Indian dairy sector is appealing for a reduction in GST on ghee and butter from 12% to 5%. 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.

Consumption Patterns and Food Safety Concerns

India consumes most of its 239 million tonnes of annual production internally. Authorities caution against food adulteration, urging consumers to purchase from reliable vendors. The sector supports over 80 million rural households while navigating challenges like Foot-and-Mouth Disease and Lumpy Skin Disease.

Innovation and Events

The First Indian Cheese Festival 2025 was held at the National Dairy Development Board (NDDB) in Anand, Gujarat, marking a significant event for the country's dairy sector. The Indian government's decision to decrease goods and services tax (GST) rates on dairy products aims to make them more affordable during the festive season in India. The initiative aligns with the Government of India’s GST 2.0 reforms. The price cuts on Verka dairy products are aligned with India's GST 2.0 reforms, which reduced tariffs on essential dairy items.

Regional Challenges

Kerala's dairy farmers face a crisis as rising production costs outpace milk prices. Production costs have surpassed the prices they receive for milk, generating a significant financial strain. This ongoing economic threat is forcing many farmers to contemplate exiting the dairy industry altogether if the procurement price of milk isn't raised.

Environmental Initiatives

The Indian government has reformed the Goods and Services Tax (GST) system. The GST reform includes a two-slab system of 5% and 18%, with a 40% slab for luxury and sin goods. Essential items like UHT milk, Indian breads, and pre-packaged paneer will now attract NIL tax rates.

Sustainability Efforts

Delhi's Chief Minister inaugurated the city's first large-scale biogas plant. The biogas plant at Nangli Dairy in Delhi is a significant step toward sustainability and waste management. It processes 200 tonnes of cattle dung and biodegradable waste per day, producing approximately 14,000 cubic meters of raw biogas daily. This collaboration highlights India’s role in driving global change through innovative, sustainable solutions, potentially setting a widespread standard for environmental responsibility in agriculture. The Punjab government, under Chief Minister Bhagwant Singh Mann, has announced a major reduction in dairy prices. The initiative decreases ghee prices by ₹30-35 per kilogram and reduces paneer costs by ₹15 per kilogram. This strategic move is a part of the administration's comprehensive price reduction plan, prioritizing consumer welfare and enhancing the cooperative dairy system.

Modified: 2025/09/24


Milkypedia is a digital project by the international publishing house Dairynews.today, serving as an encyclopedia of the global dairy industry.

It is a living, organic, and comprehensive database of the industry, accessible to everyone online.

Milkypedia by Dairynews.today compiles data on countries and key regions involved in milk production, as well as on companies and prominent figures working in the dairy sector.

Milkypedia by Dairynews.today is an automated system created by the publishing house's developers and Artificial Intelligence. The dairy industry encyclopedia independently updates data on each element. The source and database for Milkypedia are derived from the information published on the Dairynews.today news agency website.

Feedback for developers: ads@dairynews.today