India's Dairy Industry: An In-Depth Exploration
India is a global powerhouse in the dairy industry, contributing over 24% of the world's total milk supply. For the fiscal year 2023-2024, India's milk production reached 239.3 million tonnes, with projections indicating a rise to 248 million tonnes by 2024-25. The per capita milk availability increased to 485 grams per day, surpassing the global average.
Key Dairy Enterprises
Prominent players in the Indian dairy market include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India. Noteworthy developments include Milky Mist preparing for an Initial Public Offering valued at ₹20,000 crore, and Mother Dairy aiming for a turnover of ₹17,000 crore by 2025. Amul has invested ₹10,000 crore to enhance its processing and distribution capabilities.
Trade Dynamics
India exports around 100,000 tonnes of dairy products annually and imports approximately 50,000 tonnes, with high tariffs significantly influencing trade dynamics. There has been a notable increase in India's mozzarella exports, reflecting evolving trade patterns. The India–US trade agreement aims to increase the export potential of Indian dairy products, allowing for expanded market access in the United States.
Regional Contributions and Challenges
In 2024, Gujarat contributed 18.31 million metric tonnes of milk, while Karnataka collected 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, threatening the sustainability of its dairy farming. Meanwhile, Uttarakhand reported a 3.1% increase in milk production, reaching 1,957.2 thousand tonnes.
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 new 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. Additionally, 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 of 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.
Empowering Women and Recognitions
The Indira Mahila Dairy Scheme fosters women's entrepreneurship, enhancing household incomes and building a resilient community-based dairy ecosystem. Milma was recognized as India's Best Milk Brand at the Metro Food Awards.
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 in Telangana
The Telangana Dairy Development Cooperative Federation Ltd plans to increase milk procurement, significantly expanding its Vijaya Dairy parlour network.
Dairy Infrastructure in West Bengal
West Bengal inaugurated a 1.5 lakh litre per day dairy processing facility in Nadia, branded under 'Banglar Dairy', aimed at enhancing milk processing and supporting rural employment.
Protecting the Dairy Sector
India has strategically decided to protect its dairy sector from international competition, producing 247.87 million tonnes of milk as of 2024-25, showing a 3.58% growth from the previous year.
Ninth IDF Symposium
The 9th IDF Symposium on Sheep, Goat, Camel, and Other Non-Bovine Milk took place at the NDDB in Anand, India. The event focused on the strategic role of non-bovine milk, sustainability, innovation, and the importance of global standards in expanding these dairy systems.
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.
Enhancing Dairy Nutrition and Sustainability
The expansion of Alltech India's facilities aims to improve livestock nutrition and sustainable dairy farming practices. The new facilities support advanced nutritional analysis and precision-formulated bolus solutions.
India's Expanding Dairy and Ice Cream Market
India's dairy industry is witnessing changes, characterized by an increase in premium and value-added dairy products. The listing of Kwality Wall’s highlights the expanding influence of branded dairy products.
New Plant in Bihar
Sudha Dairy is launching a ₹50.27-crore dairy processing plant in Gaya, Bihar, aiming to improve milk procurement and rural employment in the region.
Amul AI Initiative
The Amul AI initiative is transforming dairy farming in Gujarat, focusing on empowering women and integrating advanced technology in agriculture and animal husbandry.
Kerala's Dairy Sector Achievements
Kerala's dairy sector has achieved a 14% increase in output, marking a significant step towards its goal of achieving milk self-sufficiency by 2031.
Economic Challenges
The dairy sector in India faces a range of economic challenges, with rising input costs, including feed and transportation, contributing to price adjustments. The Indian dairy industry, valued at Rs 18,975 billion in 2024, is expected to grow significantly by 2033.
Amul Dairy's Role
Amul Dairy plays a crucial role in the agro-industrial sector of Gujarat, India. Its cooperative structure boosts the agricultural economy of Gujarat and plays a significant role across India.
Efforts Against Milk Adulteration in Gujarat
Authorities in Gujarat have intensified their efforts against milk adulteration, highlighting severe concerns regarding food safety.
New Plant in Assam
The new plant in Silchar, Assam, aims to strengthen the dairy market in Assam's Barak Valley by enhancing processing capacity and supporting local dairy farmers.
India's National Mission on Interdisciplinary Cyber-Physical Systems
The Indian Institute of Technology (BHU) Varanasi is part of India's National Mission on Interdisciplinary Cyber-Physical Systems, aiming to bolster innovation ecosystems and promote technological adoption in agriculture and related sectors.
Waste Management Initiatives
The Municipal Corporation of Delhi (MCD) has unveiled a comprehensive plan to manage dairy waste, involving the establishment of ten biogas plants and nine wastewater treatment plants in Delhi to prevent pollution in the Yamuna River.
Expansion of Dairy Cooperatives in Odisha
Union Home Minister Amit Shah announced plans to expand dairy cooperatives in Odisha, similar to the Gujarat model, aiming to empower rural women economically and strengthen local livelihoods.
Frozen Dessert Sector Growth
India's ice cream and frozen dessert sector is currently experiencing rapid growth, driven by increased consumption, expansion of cold-chain infrastructure, and product innovation.
Uttar Pradesh: India's Largest Milk-Producing State
The initiative in Bundelkhand is part of a broader effort to support dairy-led rural growth in Uttar Pradesh, reducing post-harvest losses and fostering local value chain development.
India's Dairy Cold Chain Challenges
India's dairy cold chain faces extreme summer heat challenges. The demand for chilled milk products has increased, placing additional stress on the supply chain.
Supplier of Butter Imports to Saudi Arabia
India provides 13.7% of butter imports to Saudi Arabia, mostly in the form of ghee.
Regulatory and Digital Challenges
India's dairy industry faces tensions between regulatory oversight and digital skepticism. Approximately 60% of India's milk is handled by the unorganised sector, which is harder to regulate compared to organised cooperatives and private dairies adhering to stricter FSSAI standards.
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.
Contributions from Jammu and Kashmir
India's overall dairy output includes significant contributions from Jammu and Kashmir, underscoring the region's growing importance in the national agricultural landscape.
Amul's Whey Protein Plant Expansion
Amul is doubling its whey protein plant size to meet rising demand. This expansion is part of Amul's strategic plan to enhance its national presence and product offerings.
India's Dairy Landscape in 2026
India's dairy landscape in 2026 is experiencing a 'margin squeeze,' with dairy processors facing increased procurement costs. India's milk production is projected to grow by 5.7% annually through 2026, surpassing the global average.
Investment and Infrastructure
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. This financial boost is expected to address production and distribution challenges, enhancing the overall supply chain.
Ongole Dairy
Ongole Dairy is situated in the Prakasam district of Andhra Pradesh, India.
Modified: 2026/05/26