India's Dairy Industry: A Comprehensive Overview

India stands as a global powerhouse in the dairy industry, contributing more than 24% of the world's total milk supply. In the fiscal year 2023-2024, India's milk production reached an impressive 239.3 million tonnes, with expectations to increase to 248 million tonnes by 2024-25. The per capita milk availability in India has reached 485 grams per day, surpassing the global average.

Key Dairy Enterprises

Prominent companies in India's dairy sector include 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 leading 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.

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 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.

Local Impact and Challenges

Haryana faces a severe fodder shortage due to unseasonal weather, causing feed prices to surge. The dairy sector in Haryana is experiencing significant stress as an acute shortage of chopped wheat straw and green fodder has led to a sharp increase in cattle feed prices.

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.

Home Country of the 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. Tamil Nadu’s state dairy cooperative, Aavin, operates in Madurai. Aavin cleared more than 300 tonnes of accumulated waste at its Madurai plant.

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. Himachal Pradesh has prohibited the manufacture and sale of non-dairy analogue paneer. The Himachal Pradesh government has introduced a one-year restriction on non-dairy paneer-like products sold or described as conventional paneer. The order applies across the state and was issued by Food Safety Commissioner Ashish Singhmar under the Food Safety and Standards Act, 2006.

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 21.2m tonnes in 1968-69 to more than 55.6m 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. Indian dairy companies and cooperatives are exploring premium and value-added products, including ghee.

Location of Starmilk Products' Dairy Facility

The West Bengal Pollution Control Board, which operates in India, has ordered the closure of Starmilk Products' dairy facility due to high levels of wastewater pollution.

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

India is the location of Tamil Nadu's state-run dairy cooperative network, Aavin, which procures milk from farmers through cooperative societies.

Punjab's Regulatory Actions

Punjab has prohibited the production, storage, distribution and commercial sale of analogue paneer. The Punjab government has introduced a statewide, year-long ban on analogue paneer, a non-dairy substitute designed to resemble traditional paneer. The order was made by Kanwalpreet Brar, commissioner of Punjab’s Food and Drug Administration, under Section 30(2)(a) of the Food Safety and Standards Act, 2006.

Increased Regulatory Scrutiny

The Food Safety and Standards Authority of India stated that analogue dairy products could be sold if labelled accurately, but naming them as paneer breached the Food Safety and Standards Act of 2006. Maharashtra announced a one-year prohibition on the manufacture and sale of artificial or analogue paneer, citing public-health concerns. Food-safety authorities in Karnataka’s Mandya district are investigating the alleged adulteration of about 57 tonnes of skimmed milk powder. Karnataka has a large cooperative dairy network, with Nandini as the consumer-facing brand of the state cooperative system.

The J&K Food and Drug Administration's Actions

The J&K Food and Drug Administration has stopped the sale of 10 ghee batches following testing at designated state food laboratories. The reports found that the products did not meet compositional standards established under India’s Food Safety and Standards Act, 2006.

Dairy Farm in Fazilka, Punjab

Jashanpreet and Supandeep Kaur operate a 22-animal dairy farm in Fazilka, Punjab, producing about 100kg of milk a day. India's Amul has been ranked the world’s strongest dairy brand for 2026 by Brand Finance. Amul’s leading strength score reflects the recognition and consumer equity associated with the farmer-owned cooperative in India and its international markets. Both Hatsun Agro Products and Kwality Wall’s are based in India. The companies are part of India’s listed dairy sector, with significant promoter ownership.

Rising Demand for Packaged Dairy Products

Milky Mist Dairy Food is expanding across India, focusing on paneer as demand for packaged dairy products rises. The company identifies opportunities in the category due to most paneer production being outside the organised sector.

Reliance enters India’s Ice-Cream Market with Bombay Creamery

Reliance Consumer Products has launched Bombay Creamery, an ice-cream brand made with real dairy cream and priced from ₹10, initially available in western India before expanding nationwide.

Country Delight's IPO Plans

Country Delight is preparing for a possible initial public offering in India. The proposed transaction will depend on approval from the company’s board and conditions in India’s equity market. The company’s possible listing comes as Indian consumer and technology businesses seek access to public markets.

The Jammu and Kashmir Food and Drugs Administration's Prohibitions

The Jammu and Kashmir Food and Drugs Administration has stopped the sale, storage, distribution and display of 10 identified ghee brands and batches across the Union Territory. The prohibition was issued under India’s Food Safety and Standards Act, 2006, and applies throughout Jammu and Kashmir.

Assam's Five-Year Plan

Assam has outlined a five-year plan to raise milk output. Assam produces 33.53 lakh litres of milk each day with additional processing capacity under development. The plan includes increasing processing capacity, cooperative participation, and focusing on women-led cooperatives.

Asia-Pacific Market Growth

Asia-Pacific is expected to be among the faster-growing regional markets. Producers in China, India and other Asian countries invest in farm modernisation and structured feeding systems. Amul, an Indian brand, received the highest strength score in the ranking, with 93 points out of 100 on the Brand Strength Index. The enterprise is located in Gujarat, a state in India. The dairy enterprise is part of Gujarat's livestock economy, where women account for more than 36% of registered suppliers to the state’s cooperative dairy system.

The Dairy Investment and Development Plan in Madhya Pradesh

The Madhya Pradesh cabinet approved ₹2,973 crore for milk producers and dairy development. The plan includes expanding cooperative milk collection from 7,331 villages to 26,000 within five years.

Fire Incident in Odisha

A fire broke out at a dairy manufacturing facility in the Jagatpur Industrial Area of Cuttack district, Odisha. The fire began at a dairy manufacturing facility in the Jagatpur Industrial Area of Cuttack district, Odisha, India, early on Thursday. The incident prompted an emergency response from firefighting teams serving the industrial zone.

Milk Rate Increases

Tamil Nadu and Mumbai have increased milk rates. Tamil Nadu has raised its procurement price for milk supplied to Aavin by ₹6 per litre, while Mumbai’s wholesale rate will rise by ₹9 per litre from September 1. The changes reflect higher expenses reported across dairy production.