India's Dairy Industry: A Comprehensive Overview

India stands as a global leader in the dairy industry, contributing over 24% to the world’s milk supply. For the fiscal year 2023-24, India's milk production reached an impressive 239.3 million tonnes, with expectations for 2024-25 suggesting an increase to 248 million tonnes. Per capita milk availability in India has risen to 485 grams per day, surpassing the global average.

Key Dairy Enterprises

India’s dairy sector is led by prominent companies such as Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India. Milky Mist is preparing for a significant Initial Public Offering valued at ₹20,000 crore. Mother Dairy aims for a turnover of ₹17,000 crore by 2025, while Amul plans to invest ₹10,000 crore to enhance processing and distribution capabilities. Hatsun Agro Product Ltd is a notable private dairy enterprise with significant operations in South India.

Trade Dynamics

India maintains a balanced dairy trade, exporting approximately 100,000 tonnes of dairy products annually while importing around 50,000 tonnes, primarily due to high tariffs. An increase in mozzarella exports has been noted, and the India–US trade agreement promises expanded market access for Indian dairy products in the United States.

Regional Contributions and Challenges

Gujarat contributed 18.31 million metric tonnes of milk in 2024, and Karnataka collects 1.06 crore litres daily. Challenges such as declining 'toori' prices in Punjab and the resurgence of Lumpy Skin Disease pose significant concerns. Kerala faces rising production costs, while Uttarakhand reported a 3.1% increase in milk production.

Technological and Sustainability Advancements

A ₹90-crore high-tech dairy plant in Namakkal is nearing completion, benefiting over 15,000 farmers. Delhi has introduced a biogas plant processing 200 tonnes of waste daily. The National Dairy Development Board (NDDB) is establishing a solar-powered dairy processing plant in Kargil to supply fresh milk to Indian Army personnel stationed in high-altitude regions.

Strategic Developments

Nestlé India is expanding with a $600 million investment in a new factory in Odisha. The Union Home Minister inaugurated the Sabar Dairy Plant in Rohtak, Haryana, to distribute products throughout the Delhi–National Capital Region.

Market Challenges

The Indian dairy industry faces a tightening milk supply and rising procurement costs. Geopolitical tensions have disrupted production patterns, particularly affecting northern milk-producing regions. Efforts against milk adulteration have intensified, with over 12,000 cases filed in the fiscal year 2024-25.

International Collaborations

India and Brazil have embarked on a strategic partnership in dairy cattle and buffalo genomics, aiming to establish a state-of-the-art Cattle and Buffalo Genomics Laboratory in India.

Expansion and Infrastructure

Sudha Dairy is launching a ₹50.27-crore dairy processing plant in Gaya, Bihar, aiming to improve milk procurement and rural employment. The Telangana Dairy Development Cooperative Federation Ltd plans to expand its Vijaya Dairy parlour network. West Bengal inaugurated a dairy processing facility in Nadia, under the brand 'Banglar Dairy'.

White Revolution 2.0

India’s Ministry of Cooperation has launched White Revolution 2.0 to expand the cooperative dairy sector. The initiative focuses on increasing milk procurement by 50% in five years, expanding cooperative coverage, and enhancing women’s participation in the dairy industry.

Infrastructure and Investment

The Indian government has assured that the supply and pricing of milk and dairy products remain stable. India is set to expand significantly with an $860 million investment aimed at improving infrastructure, addressing production and distribution challenges.

Technological Innovations

The Amul AI initiative is transforming dairy farming in Gujarat, focusing on empowering women and integrating advanced technology in agriculture and animal husbandry. Efforts against milk adulteration in Gujarat highlight severe concerns regarding food safety.

Price Increase Projections

Milk prices in India are expected to rise by ₹3–4 per litre by 2026, putting pressure on dairy margins as input costs climb. India launches the country’s first naturally self-degradable milk pouches, addressing the growing issue of plastic waste.

Regional Developments

Himachal Pradesh is witnessing a significant transformation in its dairy sector with a fourfold increase in milk procurement volumes. Amul is investing up to Rs 650 crore in West Bengal to establish a mega dairy processing plant.

Legal and Brand Developments

Legal approval for Karnataka Milk Federation’s Nandini brand expansion in Telangana. GRB Dairy Foods has launched a comprehensive marketing campaign focusing on its flagship ghee product. The Delhi High Court issued a directive to remove false social media content linking Amul to cow meat.

Animal Husbandry and Economic Growth

Animal husbandry is poised to boost Jammu and Kashmir’s economy, with livestock farming contributing approximately 25-28% to the agricultural gross domestic product. A national conclave highlights animal agriculture’s potential to drive economic growth.

Success Stories and Innovations

Punjab brothers transformed their family farm into a major dairy enterprise, increasing monthly sales significantly. India is projected to achieve a 6% growth in milk production for FY27, maintaining its global leadership despite potential climate challenges.

Brand Recognition and Environmental Initiatives

Verka, a prominent dairy brand in Punjab, faced public outrage over a controversial advertisement. India’s initiative to transform dairy waste into sustainable bio-energy aims to protect the Yamuna River.

Mother Dairy's Sustainability Efforts

Mother Dairy has introduced India’s first naturally soil-degradable milk pouch, marking a significant step in sustainability. The White Revolution 2.0 aims to connect 8 crore farmers to cooperatives and increase dairy output by 50%.

Infrastructure Enhancements

Tripura opens a new liquid nitrogen plant, enhancing local cattle breeding infrastructure. This development provides a more reliable and localized supply chain for the state’s livestock sector.

International Investments

A delegation of Indian engineers and dairy executives has finalized a significant £25 million investment. The equipment, manufactured by IDMC in Gujarat, includes over 200 pieces, such as five stainless steel silos each capable of holding 125,000 litres of milk.

Milk Safety and Legal Matters

Jammu and Kashmir initiates comprehensive milk safety inspections. The Food Safety Department in Jammu and Kashmir has launched a thorough inspection of milk vendors in Rajouri due to public complaints about milk quality. The Bombay High Court in India granted Vadilal Dairy International interim protection in a trademark dispute.

Export Enhancements

India plans to achieve foot-and-mouth disease-free certification in nine states within two years to enhance dairy exports to Europe. This strategic move is designed to facilitate access to Europe’s lucrative dairy market. India is set to enhance its dairy exports to $5 billion by 2030, focusing on premium products.

Local Economic Adjustments

Punjab Chief Minister Bhagwant Mann has approved an increase in milk procurement rates. The updated rates provide financial relief to dairy farmers in Punjab, addressing operational cost pressures.

Women-led Dairy Societies

Women’s participation in Gujarat’s dairy cooperatives has increased over the past five years. The state now has 4,562 women-led dairy societies, while nearly 1.2 million women are among its 3.6 million dairy producers.

Goat Milk Production

India remains the world’s largest goat-milk producer, producing about 30% of the world’s goat milk. Goat milk accounts for 3.32% of the country’s domestic milk supply and supports smallholder and landless farming households.

National Dairy Development Board

NDDB has developed several dairy-based circular-economy models, supporting renewable-energy production, soil health, and lower methane emissions. India is also expanding its dairy network and aiming to increase daily milk procurement.

Dr. Meenesh Shah's Contributions

Dr. Meenesh Shah, chairman of India’s National Dairy Development Board, has worked in India’s dairy sector for more than four decades, focusing on co-operative development, dairy operations, and the livelihoods of rural farmers.

India's 2026–27 Budget and Global Initiatives

India's Union Budget for 2026–27 raises funding for animal husbandry by 16% to Rs 6,153.46 crore, sets aside Rs 500 crore for an entrepreneurship scheme covering livestock and dairy enterprises, and aims to support international collaboration on innovation.

International Events

India will host the IDF World Dairy Summit from 16 to 19 November 2027. The summit will be organised by the Indian National Committee of the IDF at the Jio World Convention Centre in Mumbai.

Regional Developments in Manipur

Manipur’s dairy potential is supported by its agro-climatic conditions and a cattle population of about 260,000. The state government transferred management of the Manipur Milk Union to NDDB, which is seen as a turning point for the state’s cooperative dairy movement.

Nutrition Security and Malnutrition Mitigation

India’s per-person milk availability is about 485 grams a day. The NDDB Foundation for Nutrition held a national conclave in New Delhi on corporate social responsibility, nutrition security, and malnutrition mitigation.

India's Organised Cheese Market

Parag Milk Foods aims to capture a larger share of India’s organised cheese market, which is projected to reach about ₹12,900 crore in 2025 and nearly ₹62,000 crore in 2034.

Food Loss Reduction

India aims to reduce current food losses from 15–20% to approximately 5% by 2047. This target is part of efforts to strengthen food security and improve the food value chain.

Direct Benefit Transfer in Bihar's Dairy Cooperatives

Bihar’s dairy cooperatives have been recognised as strong performers in using Direct Benefit Transfer for milk-procurement payments. Bihar’s cooperative dairy network transfers payments for procured milk directly into beneficiaries’ bank accounts.

Adulteration Concerns in Gujarat

Gujarat authorities detained a man over suspected adulterated milk. India continues to sell and consume a considerable share of its milk and dairy products through loose or informal channels.

Regulatory Actions in Karnataka

Karnataka’s Food Safety and Drugs Administration has prohibited analogue and non-dairy paneer products across the state for one year.

Protests in Tamil Nadu

Dairy farmers in Salem district of Tamil Nadu, India, blocked the Salem–Chennai National Highway demanding higher milk procurement prices and loan relief.

Market Review of Indian Dairy Companies

A market review has shortlisted several Indian dairy companies. The review identifies five companies operating beyond the country’s largest names, including Hatsun Agro Product and Parag Milk Foods.

International Collaboration and Ventures

Cargill opens a new dairy-feed plant in Punjab, India, which will make feed for young animals and milking cows.

Regulatory Actions in Haryana

The Haryana government in India has prohibited analogue and non-dairy paneer throughout the state for 12 months due to quality and composition concerns.

Nestlé India's Expansion

Nestlé India is expanding its capacity and focusing on dairy, nutrition, and premium products, supported by domestic demand and economic expansion.

Milk Quality and Awareness Initiatives

The Punjab Dairy Development Department held an awareness and milk-testing camp. The camp was organized by Punjab’s Dairy Development Department at Saragarhi Memorial Meritorious School in Hakam Singh Wala, Ferozepur, focusing on milk nutrition, consumer awareness, and checking dairy quality.

Milkfood's Investment in Patiala

Milkfood is allocating ₹20 crore to capital expenditure at its main manufacturing site in Patiala, Punjab, India. India’s milk output rose significantly due to the cooperative movement. Figures cited in the source show India’s milk output rising from about 21.2 million tonnes in 1968-69 to more than 55.6 million tonnes in 1991-92, making it the world’s largest milk producer.

Indian Ghee Products Recognition

Indian ghee products ranked sixth in TasteAtlas’s list. GirOrganic A2 Gir Cow Ghee and Amul Pure Ghee shared the No. 6 position in TasteAtlas’s list of the world’s best and iconic butter products.

Chennai's Artisanal Cheese Movement

Chennai cheesemakers are combining Indian milk and local ingredients with European fermentation and ageing methods. Artisanal cheesemakers and culinary professionals in Chennai are experimenting with native milk, indigenous ingredients, and European production techniques.

Haryana's Dairy Farmers' Demands

Haryana dairy farmers demand price increase from Vita. Dairy farmers in Haryana, a state in India, are seeking a ₹2–3 per kg increase in raw-milk procurement prices due to higher feed, fodder, and transport costs.

Tamil Nadu's Aavin Cooperative Network

Tamil Nadu's state-run dairy cooperative network, Aavin, procures milk from farmers through cooperative societies.

Procurement Adjustments

Tamil Nadu's state government has raised procurement payments for both cow and buffalo milk. Agricultural associations formally commended the measure, which affects the rates paid through cooperative milk unions in southern India.

Punjab's Bovine Breeding Rules

Punjab's Bovine Breeding Rules, 2021 are being opposed by local farmers. The rules could affect more than 30,000 dairy farmers and about 12,000 organised farms associated with the Progressive Dairy Farmers Association in Punjab, India. India’s dairy companies are expanding cheese and whey-processing operations as demand for protein supplements rises. India has been the world’s largest milk producer since 1998, but it still imports an estimated 80–85% of the whey proteins used in supplements. Imports could total as much as 23,000 tonnes in 2025.

Danone's Strategic Market Perspective

Danone considers India a strategic market. Danone estimates that India has about 23 million births a year, compared with 7 million to 8 million in China. Danone intends to make India a significant long-term growth market while maintaining a focus on profitability. Danone’s stated aim is to create a business whose scale is significant relative to India’s population while remaining sustainably profitable.

Uttar Pradesh's Investigation into Parag Dairy

Uttar Pradesh’s dairy commissioner has ordered an inquiry into alleged financial irregularities exceeding ₹100 crore at the Parag Dairy facility in Meerut. The country’s operations are overseen by the Allana Group. Manish Bandlish will oversee the Group’s operations in India. Indian dairy machinery and packaging suppliers are seeking access to the Russian market. Indian dairy engineering companies, described as having cost and operational advantages suited to high-volume processing, are connecting with procurement demand from overseas processing plants.

Milky Mist Opens Expanded Yogurt Plant

Milky Mist Dairy Food has commissioned a Skyr and Greek yogurt plant at its Perundurai facility in Tamil Nadu. The ₹40 crore project uses ultrafiltration and raises processing capacity to 150 tonnes a day. India’s main source of animal protein is milk, and it will retain its central place in the country’s food system through 2070.

Protein Consumption Projections

Protein consumption in India could more than triple by 2070. The dairy sector is vital, with milk production increasing significantly over the years. Challenges include increasing productivity while reducing environmental impact, such as methane emissions and water usage. Smallholder farms supply a majority of the milk.

Provilac's Fresh Dairy Initiative

Provilac is positioning fresh dairy with elevated protein content as an everyday food category. The funding arrives as higher protein intake becomes a growing focus in India’s food and beverage industry.

Semen Production Station Quality

The central semen-production station at Ode retained an 'A-Grade' quality rating from the Government of India.

Milk Procurement Expansion

Milk procurement operations extended beyond the union’s traditional base in Gujarat. The cooperative sourced milk in production areas in West Bengal, Maharashtra, Punjab, Andhra Pradesh, Assam, and Tamil Nadu.

Regulatory Actions in Haryana's Nuh District

Authorities in Haryana’s Nuh district raided four unlicensed dairies and confiscated about 7,500kg of suspected adulterated paneer. The operation involved the Chief Minister’s Flying Squad, food-safety officials, and local police, with the product intended for wholesale markets in the National Capital Region.

Madhya Pradesh's White Revolution 2.0

Madhya Pradesh’s reported milk output is being questioned as the state advances its “White Revolution 2.0” programme. The Madhya Pradesh administration is promoting “White Revolution 2.0”, a policy framework that seeks to double the state’s milk production and increase its share of India’s milk market to 20%. Government projections also cite gains in the productivity of indigenous cattle.

International Cooperation Projects

India's ambassador visited Venezuela to discuss agricultural co-operation projects. The process of Guayanés cheese certification was presented during a business meeting held as part of a visit by India’s ambassador, P.K. Ashok Babu.

Tuberculosis-Elimination Efforts

The initiative is part of India's tuberculosis-elimination efforts. The central government appealed for greater public participation in India’s tuberculosis-elimination efforts, leading to initiatives like the ‘TB Mukt Anand-Kheda-Mahisagar District’ campaign and the Pradhan Mantri TB Mukt Bharat Abhiyaan.

Expansion of Dairy Operations in Southern India

Amul plans to invest ₹500 crore across Telangana and Andhra Pradesh, expanding its dairy operations and infrastructure in southern India.

The Protests in Andhra Pradesh

The protests took place in Andhra Pradesh, India. The disputed changes cover several packaged liquid-milk products sold across Andhra Pradesh’s central coastal corridor. The protests have brought the conflict between producer incomes and urban affordability into Andhra Pradesh’s political debate.

Dakshina Kannada Cooperative Milk Producers’ Union

The Dakshina Kannada Cooperative Milk Producers’ Union operates in Karnataka’s Dakshina Kannada and Udupi districts. The union reported its highest annual turnover of ₹1,174 crore and a record net profit of ₹12.79 crore. Daily milk collection rose 16% year on year to 3.97 lakh litres.

Parag Milk Foods' Launch

Parag Milk Foods launched Avvatar Popped Chips in India. Production draws on Parag Milk Foods’ whey-processing facilities at its Manchar complex in Maharashtra.

Jaipur's Dairy Enterprise

Jaipur-based engineers developed a dairy enterprise involving livestock management, processing, and brand development from indigenous Gir cows. Telangana is increasing efforts to raise milk production and strengthen dairy farmers. Telangana’s milk production reached 59.35 lakh tonnes in 2024-25 and is projected to rise to 61.75 lakh tonnes in 2025-26. The government has identified greater self-reliance in milk production as a policy objective while also focusing on the position of dairy farmers.

International Trade Participation

The workshop is focused on increasing India’s participation in international dairy trade. Participants include dairy exporters attending in person and online, as well as researchers, entrepreneurs and other representatives of the sector. The programme is focused on increasing India’s participation in international dairy trade.

State Dairy Dynamics

The dispute between Kerala's Milma and Karnataka's Nandini over milk retailing highlights India's state dairy dynamics. The Kerala Co-operative Milk Marketing Federation (Milma) is challenging the Karnataka Milk Federation's (KMF) expansion of Nandini milk retailing in Kerala, citing issues of subsidized production leading to competitive pricing pressures.

Biotech and Genetics Investment

BL Agro plans to invest ₹1,500 crore in its biotech subsidiary Leads Genetics in India. The investment will support an integrated model for dairy and cattle-genetics operations, including genomics, in-vitro fertilisation, and animal health and breeding technologies.

Microplastic Concerns

A study found microplastic particles in packaged and locally sourced raw cow milk in India. Researchers detected 66 microplastic particles in nine samples of milk collected locally in India, with concentrations ranging from three to 30 particles per litre.

Free Trade Agreement with New Zealand

India is involved in a free-trade agreement with New Zealand. India will receive broader access to the New Zealand market under the reciprocal arrangement: all Indian goods are to enter New Zealand without tariffs. The agreement comes as commercial exchanges between the countries expand, with two-way trade totalling NZ$3.99 billion in the year ending June 2026.

Regulatory Actions in Maharashtra

The Bombay High Court ruled on a land acquisition case involving dairy operations. The case was heard in the Bombay High Court, which is located in Maharashtra, India. It involved statutory compensation for losses from a dairy operation affected by compulsory land acquisition. The case involves a dispute over a dairy farm in West Bengal. The Calcutta High Court in India ruled on the role of police in dairy farm disputes, emphasizing the responsibilities of the West Bengal Pollution Control Board and municipal authorities.

Vadilal Dairy International's Appointments

Vadilal Dairy International has appointed Neha Kulkarni as Company Secretary and Compliance Officer, effective immediately. The appointment was approved and ratified by the company’s Board of Directors. The company reported the decision through official filings with domestic stock exchanges.

Sundari's Dairy Enterprise

Sundari, from Badinaru in Karnataka’s Kodimbady village, used payments from the state’s Gruhalakshmi scheme to start a dairy business.

Dairy Valley Paneer

Dairy Valley Paneer was made by Indian chef Bipen Sharma using traditional techniques. The company had sought to reproduce the product’s taste, appearance, and texture outside India. India has transferred 43 pureline Jersey cows to Bhutan for its dairy cattle-breeding programme. India provided Bhutan with 43 pureline Jersey cows as part of bilateral cooperation in agriculture and rural development.

Maharashtra's Flavoured Milk Initiative

The state of Maharashtra, India, is implementing a program to supply 200 ml aseptic flavoured-milk cartons to more than 65,000 students in government hostels and residential schools.

Location of Milky Mist's Yogurt Facility

Milky Mist Dairy Foods has commissioned a yogurt plant at its integrated processing campus in Perundurai, in Tamil Nadu’s Erode district, India. India presented its experience in livestock health, productivity and sustainability at the FAO Global Conference. India's Animal Husbandry Commissioner highlighted a growing emphasis on preventive animal-health measures and vaccination programmes, disease-free production systems, and digital livestock systems. The Ahmedabad Municipal Corporation sealed a dairy parlour after laboratory analysis. Authorities in Ahmedabad, India, took action against food businesses for safety violations, including the sealing of Shreeji Dairy Parlour for selling ghee with vegetable fat. India is scheduled to see the availability of Lacta Insight™ in September 2026. India produced 247.87 million tonnes of milk in 2024-25 and remains the world’s largest milk producer.

Nagaland's Dairy Industry Potential

Nagaland's dairy industry potential highlighted by Dr Elizabeth Yhome. Nagaland State Dairy Co-operative Federation aims to develop a local dairy network to reduce dependency on imported dairy products.

Big Nano Ventures

Big Nano Ventures is a Gujarat-based agricultural start-up. The company has developed a pregnancy-detection kit for livestock and is based in Gujarat, India. Sardar Cattle Feed is expanding its livestock-nutrition business in India. The company began as a family-run cattle-feed operation established by Shri Ramesh Goyal and now operates alongside the Sudharma Feed brand. The National Dairy Development Board launched an eastern India programme to strengthen the edible-oils value chain. West Bengal aimed to raise farm incomes through cultivation of mustard, groundnut, sunflower, and sesame. The state's agricultural marketing department would work to improve farmers' access to aggregation, storage, processing, and sales.

Karnataka Lawmakers' Calls

Karnataka lawmakers are calling for an increase in the price paid for raw milk as dairy producers face higher input and livestock costs. Cooperative unions are also seeking a direct share of any retail-price increase.