India: A Global Dairy Powerhouse
India stands as a dominant force in the global dairy sector, accounting for over 24% of the world's total milk supply. The country boasts an extensive livestock base, with approximately 192 million dairy cattle and 135 million dairy goats, solidifying its position as a leader in dairy production.
Milk Production and Processing
In the fiscal year 2023-2024, India achieved a remarkable milk production volume of 239.3 million tonnes. The processing sector manages between 65 to 70 million tonnes annually, producing significant outputs such as 90,000 tonnes of cheese and approximately 600,000 tonnes each of milk powder and whey.
Key Dairy Enterprises
Prominent market players include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India, driving growth and innovation within India's dairy economy. Milky Mist's planned IPO valued at ₹20,000 crore and Mother Dairy's projected turnover reaching ₹17,000 crore by FY 2025 highlight significant market movements.
Trade Dynamics
India exports around 100,000 tonnes of dairy products annually and imports approximately 50,000 tonnes. High tariffs protect the industry, influencing export-import dynamics and making dairy a critical component of global trade agreements. Notably, India's mozzarella exports have surged, marking significant growth in the global mozzarella trade.
Regional Contributions and Challenges
Gujarat contributed 18.31 million metric tonnes in 2024, while Karnataka's daily milk collection reached 1.06 crore litres. Challenges include financial strains from falling 'toori' prices in Punjab and the re-emergence of Lumpy Skin Disease. Kerala faces a crisis with rising production costs outpacing milk prices, threatening dairy farming sustainability.
Technological and Sustainability Advancements
A ₹90-crore high-tech dairy plant in Namakkal nearing completion is set to benefit over 15,000 farmers. Sustainability efforts are evident with Delhi's new biogas plant processing 200 tonnes of waste daily. Amul's ₹10,000 crore investment plan aims to expand processing and distribution capabilities, supported by changes in GST rates on dairy products that have boosted rural incomes.
Strategic Developments
Nestlé India is committing to a $600 million expansion with a new factory in Odisha, significantly enhancing production capabilities. The Union Home Minister inaugurated the Sabar Dairy Plant in Rohtak, Haryana, to distribute dairy products throughout the Delhi–National Capital Region.
Modernization Efforts
Himachal Pradesh is modernizing its dairy sector with the Dhagwar Milk Plant, part of a broader transformation incorporating technology and efficiency to empower producers and create value.
Investment Opportunities and Infrastructure
Haryana's 'Go Global' approach invites international investments, leveraging its infrastructure and skilled workforce. A new Central Veterinary Hospital in Srinagar is under construction, enhancing veterinary services for livestock and dairy farmers in Jammu and Kashmir.
International Trade Developments
India is nearing a trade agreement with the United States, including limited openings for US dairy products, adhering to stringent safety and regulatory standards.
Empowering Women and Recognitions
The Indira Mahila Dairy Scheme aims to foster women's entrepreneurship, elevate household incomes, and build a resilient community-based dairy ecosystem in Madhira, India. Milma, a prominent cooperative brand, was recognized as India's Best Milk Brand at the Metro Food Awards, showcasing its commitment to quality.
Leadership Changes
Mother Dairy, a major player in the Indian and global dairy market, is experiencing a leadership change with the resignation of Managing Director Manish Bandlish. The company is owned by the National Dairy Development Board.
Financial Commitments and Initiatives
The Tamil Nadu government has financial commitments to milk producers, promising a subsidy to cover losses due to reduced milk prices by Aavin. Pending incentives amounting to ₹215 crore are affecting the financial stability of local milk producers. NDDB is establishing a solar-powered dairy processing plant in Kargil, India, to supply fresh milk to Indian Army personnel stationed in high-altitude regions.
Infrastructure Expansion
India's dairy sector is set for a major boost with the expansion of the Dairy Plant Project in Madhavaram, part of a broader strategy to expand infrastructure and ensure stable supply chains.
Regional Challenges
Bihar faces a significant protein deficit due to inadequate dairy and meat production, impacting rural producers and raising consumer prices in urban areas. In Goa, the price of full cream milk has soared to Rs 70 per liter due to increased input costs, affecting farm profitability.
In Rajasthan's Sirohi district, the introduction of solar-powered milk chillers is transforming milk collection and transportation for the Asha Mahila Milk Producer Organisation, enhancing quality and efficiency.
Policy and Financial Implications
India's potential reinstatement of the US GSP status could unlock over $1 billion in duty-free agricultural exports, potentially reducing tariffs and enhancing trade relations. Nestlé India faces a ₹1.8 crore GST demand impacting the dairy sector, which could have significant implications for multinational agribusinesses operating in India.
Suzuki Motor Corporation has launched its inaugural biogas production facility in Gujarat, India. The plant, located in Agthala, Banaskantha district, is designed to generate 1.5 tons of compressed biogas daily from up to 100 tons of cow dung.
The Enforcement Directorate conducted searches at five locations in Maharashtra related to a Rs 108.30 crore fraud in the dairy sector.
India's frozen desserts market is witnessing competition between Hindustan Unilever Limited (HUL) and the domestic cooperative giant, Amul. The success of their strategies will depend on shifting consumer preferences in India.
Modified: 2025/12/14