India's Dairy Industry Overview
India stands as the global leader in milk production, contributing more than 24% to the world's total supply. This is supported by an extensive livestock base, including approximately 192 million dairy cattle and 135 million dairy goats.
Milk Production and Processing
In the fiscal year 2023-2024, India achieved a remarkable milk production of 239.3 million tonnes. The processing sector manages between 65 to 70 million tonnes annually. Notably, cheese production reaches around 90,000 tonnes, while milk powder and whey each account for about 600,000 tonnes per year.
Key Dairy Enterprises
Major 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 approximately 100,000 tonnes of dairy products annually, while importing around 50,000 tonnes, showcasing its strategic position in the global market and relative self-sufficiency in dairy production.
Significant Market Events
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. Yakult Danone India launched 'Yakult Light Mango', targeting a 50% sales growth. The World Dairy Summit 2027 will be hosted in India, highlighting its global significance. Ongoing EU trade negotiations focus on dairy market access, with India excluding dairy from recent FTAs.
Future Outlook
India's dairy market is poised for expansion and sustainability. Key initiatives include the proposed world's largest curd manufacturing facility in Kolkata and biogas model implementation in 250 cooperative districts. Despite geopolitical tensions, India remains a leader, focusing on technological modernization, value-added products, and export diversification. Innovations like Danone India's DEXOGROW and Bharat Biotech's Biolumpivaxin vaccine emphasize health and nutrition. New facilities, such as Gomati Dairy in Tripura and Amul Dairy in Assam, aim to boost regional production.
Regional Contributions
Gujarat contributes significantly with 18.31 million metric tonnes in 2024. Karnataka is also a leading producer, with the Karnataka Milk Federation collecting 1.06 crore litres in a single day.
Challenges and Innovations
Farmers in Punjab face financial strain due to falling 'toori' prices, as alternative feeds become popular. India's probiotics industry has doubled in value over five years, driven by a 22% annual growth rate. Bamul introduces biodegradable packaging, with Karnataka's Nandini launching a pilot project using corn-based covers.
Trade and Policy Dynamics
India's trade strategy involves protecting domestic farmers while negotiating tariff reductions for non-essential imports. The potential US-India trade deal could impact the dairy sector, potentially reducing milk prices by 15%. India's firm stance on dairy tariffs has delayed trade pacts with Australia and others. The Asia Pacific region, including India, is expected to lead global dairy consumption growth, driven by rising incomes and urbanization. India launches its first automated online module for dairy cooperative registration as part of the White Revolution 2.0.
Despite being a leading milk producer, many small-scale dairy farmers in India have historically struggled to secure necessary financial backing to expand and modernize their operations. Dairy farm loans are emerging as a pivotal catalyst for boosting rural entrepreneurship and driving agricultural growth across the country.
Authorities in Dhanbad, Jharkhand, seized over 885 kg of adulterated dairy products, highlighting ongoing challenges in food safety. This bust underscores the persistent issue of food fraud within India's dairy sector, raising serious concerns about public health and consumer trust.
The India-UK Free Trade Agreement is set to boost Indian agricultural exports while safeguarding the local dairy sector. India anticipates a substantial increase in its agri-exports, with forecasts suggesting growth of over 20% within the next three years. Additionally, India has strategically excluded dairy products from tariff concessions to the UK to protect its domestic dairy industry.
Modified: 2025/07/25