India's Dominance in the Global Dairy Industry
India stands as a powerhouse in the global dairy sector, accounting for over 24% of the world's total milk supply. The country's extensive livestock base includes approximately 192 million dairy cattle and 135 million dairy goats, positioning it as a leader in dairy production.
Milk Production and Processing
In the fiscal year 2023-2024, India's milk production reached an impressive 239.3 million tonnes. The processing sector is equally robust, handling between 65 to 70 million tonnes annually. Key products include cheese, with a production of 90,000 tonnes, and milk powder and whey, each around 600,000 tonnes annually.
Key Dairy Enterprises
Significant players in the market include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India, among others. These enterprises drive innovation and market growth within India's dairy economy.
Trade Dynamics
India exports approximately 100,000 tonnes of dairy products annually, while importing around 50,000 tonnes. High tariffs protect local farmers and significantly impact export-import dynamics, making the dairy industry a major 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. Parag Milk Foods reported a 27% profit increase in ghee and cheese, and Yakult Danone India launched 'Yakult Light Mango', targeting a 50% sales boost. India is set to host the World Dairy Summit in 2027.
Future Outlook
The Indian dairy market is on a growth trajectory with plans for the world's largest curd facility in Kolkata and biogas implementation in 250 districts. Focus areas include technological modernization, value-added products, and export diversification.
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
In Namakkal, a ₹90-crore high-tech dairy plant 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.
Innovation and Industry Events
The First Indian Cheese Festival 2025 at the NDDB in Gujarat marked a significant event. The GST Council's tax reforms have made dairy products more affordable, aligning with GST 2.0 reforms during the festive season.
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. The donkey milk market in Hyderabad is becoming lucrative, selling for an unparalleled ₹6,667 per litre due to traditional medicinal beliefs.
Strategic Developments
Nestlé India commits to a $600 million expansion with a new factory in Odisha, marking a significant step in enhancing production capabilities. Additionally, Union Home Minister Amit Shah recently inaugurated the Sabar Dairy Plant in Rohtak, Haryana, which is set to distribute dairy products throughout the Delhi–National Capital Region.
Systemic Challenges
India's dairy sector is hindered by feed shortages, export bans, and infrastructure deficiencies, affecting 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. The livestock sector, home to the world’s largest cattle and buffalo population, anchors rural livelihoods and food security, yet contributes substantially to global methane emissions. The 2019 Livestock Census reveals a 25% decline in indigenous breeds and a 30% increase in buffaloes, indicating a shift towards productivity but higher emission intensity. Reducing methane is crucial for productivity, profitability, and global competitiveness.
International Relations
India's influence and cooperative model are highlighted in Fiji through the launch of Amul Cow Ghee. This initiative is seen as a symbol of economic cooperation and community upliftment, emphasizing India's successful cooperative sector. A major push to India’s agri-allied sectors is evident as Prime Minister Narendra Modi inaugurated and laid the foundation for dairy and livestock projects worth ₹1,166 crore, aimed at strengthening rural livelihoods and ensuring sustainable agricultural growth.
The curd plant at Karimnagar received support from the Centre. The ₹90.70 crore automatic curd plant at Karimnagar Dairy was established with support from both the Centre and the Japan International Cooperation Agency (JICA).
Modified: 2025/10/15