India's Dairy Industry: A Global Leader

India plays a pivotal role in the global dairy market, contributing over 24% to the world's milk supply. In the fiscal year 2023-24, India's milk production reached 239.3 million tonnes, and it is projected to increase to 248 million tonnes in 2024-25. The per capita milk availability in India has risen to 485 grams per day, exceeding the global average.

Key Players in the Indian Dairy Market

Leading companies such as Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India dominate the Indian dairy market. 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 its processing and distribution capabilities.

Trade and Export Dynamics

India maintains a balanced dairy trade, exporting approximately 100,000 tonnes of dairy products annually while importing around 50,000 tonnes. The India–US trade agreement has expanded market access for Indian dairy products in the United States, with a notable increase in mozzarella exports.

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, the resurgence of Lumpy Skin Disease, and rising production costs in Kerala pose significant concerns. Uttarakhand reported a 3.1% increase in milk production.

Technological and Sustainability Advancements

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

Strategic Developments and Investments

Nestlé India expands 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. An $860 million investment is planned to improve infrastructure, addressing production and distribution challenges.

Market Challenges and Initiatives

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. The Ministry of Cooperation has launched White Revolution 2.0 to expand the cooperative dairy sector, focusing on increasing milk procurement by 50% in five years.

International Collaborations and Expansion

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. Sudha Dairy is launching a ₹50.27-crore dairy processing plant in Gaya, Bihar, aiming to improve milk procurement and rural employment.

Infrastructure and 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. Mother Dairy has introduced India's first naturally soil-degradable milk pouch, marking a significant step in sustainability.

Regional Developments and Legal Matters

Himachal Pradesh is witnessing a significant transformation in its dairy sector with a fourfold increase in milk procurement volumes. Legal approval for Karnataka Milk Federation’s Nandini brand expansion in Telangana. 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.

Women-led Dairy Societies and Goat Milk Production

Women’s participation in Gujarat’s dairy cooperatives has increased over the past five years. India remains the world’s largest goat-milk producer, producing about 30% of the world’s goat milk, supporting smallholder and landless farming households.

National Dairy Development Board and Initiatives

NDDB has developed several dairy-based circular-economy models, supporting renewable-energy production, soil health, and lower methane emissions. The board is also focusing on expanding India’s dairy network and increasing daily milk procurement.

Regional Pricing Dynamics

Karnataka state in India is dealing with milk price increases. The Karnataka Milk Federation decided to increase the price of curd, and there have been changes in milk pricing due to drought and competitive pricing in neighboring states.

Efforts to Increase Milk Yield

India's efforts to increase milk yield through breeding, vaccination, and dairy-development programmes have shown results. Average milk yield among India's cows and buffaloes has increased to about eight litres per animal. The Bharat Bovine Breeding and Research Centre in Bhildi, Gujarat, focuses on genetic improvement and reproductive technologies. The Rashtriya Gokul Mission aims to conserve and improve indigenous cattle breeds.

Product Innovations and Regulatory Measures

Amul launches High Protein Cubes in India, aimed at health-conscious buyers and fitness enthusiasts seeking convenient ways to add protein to their daily diets. Karnataka’s cabinet approved the Nandini price adjustment amid increasing expenditure on feed, fodder, veterinary care, and milk production.

Food Safety and Indigenous Breed Conservation

Food-safety officials conducted inspections in Madhya Pradesh state, focusing on food safety compliance and product quality during Diwali. India plans to establish a Siri Bull Mother Farm in Sikkim for indigenous cattle conservation. India's government plans to set up a Siri Bull Mother Farm in Chuchachen, Sikkim's Pakyong district, to conserve and genetically improve the indigenous Siri cattle breed. The project is aligned with the Rashtriya Gokul Mission, aiming to support cattle conservation and genetic improvement.

Government Initiatives in Sikkim

India’s minister for fisheries, animal husbandry, and dairying will launch initiatives in Sikkim. Minister Rajiv Ranjan Singh is scheduled to launch initiatives to establish 57 dairy cooperative societies in Sikkim under White Revolution 2.0. The minister's visit includes reviewing dairy programmes and inaugurating a microbiology laboratory for the Sikkim Milk Union.

Regional Pricing Adjustments

Karnataka’s Congress government has raised retail milk prices. Karnataka's Congress government increased milk prices by Rs 8 per litre and curd prices by Rs 14 per kilogram, citing higher production expenses for dairy farmers. Indian state government seeks review of Rs 14 curd-price increase. D K Shivakumar said on Monday that he had asked the Karnataka Milk Federation (KMF) to reconsider its curd-price increase following pressure from hoteliers and consumers.

Financial Support for Dairy Farmers

Indian state transfers 685.1 million rupees to 106,063 dairy farmers. Bihar’s government has paid 685.1 million rupees directly into the bank accounts of dairy producers for milk procurement. Aavin proposes ₹5-per-litre milk price increase in Tamil Nadu. The Tamil Nadu Co-operative Milk Producers’ Federation Limited, operating as Aavin, proposed a price increase due to higher operating costs and pressure on retailers’ earnings. The proposal requires approval from the Tamil Nadu Cabinet.

Additional Market Dynamics

Doodhvale Farms operates within India, supplying fresh dairy each day to cities in northern India and aiming to address India's protein gap through its products. The Karnataka Milk Federation (KMF) has agreed to lower Nandini curd prices by ₹2 per litre, following a previous increase. The decision was made after a visit by a KMF delegation. India will not open its dairy sector or admit genetically modified products through trade agreements. India had consistently protected sensitive sectors while seeking better access to foreign markets. The country has never granted any trading partner access to its dairy sector and would continue to exclude genetically modified products. Religious considerations also shape India's dairy requirements.

Environmental and Economic Considerations

Broiler and egg prices in India fell sharply between June and August 2026. High temperatures in India’s tropical conditions affect animals’ appetite, growth, breeding and milk yields. Karnataka's cabinet approved an Rs 8-per-litre increase in milk prices. The price increase was approved to support dairy farmers facing drought and shortages of animal feed. The decision was defended by Congress leader T. B. Jayachandra, who highlighted the difficulties faced by farmers during the drought and the need for government assistance.

Trade and Market Access

India maintains agricultural import restrictions amid US announcement of 25% tariff. India reaffirmed its commitment to protecting farmers as access to its agricultural markets remained a sticking point in trade negotiations with the United States. Agriculture accounts for about 16% of the Indian economy, according to figures cited by Reuters in 2025, and supports a substantial share of the population. Food-safety requirements, environmental considerations and national agricultural policies also form part of India’s approach to allowing farm imports. India’s domestic dairy market is projected to grow from Rs 12 trillion in FY26 to Rs 19.6 trillion by FY31, alongside a shift towards processed products and specialised nutrition.

Amul's Market Influence

India’s Amul is presented as an example of a dairy cooperative. Amul has developed a recognised consumer brand through product development, dependable quality, packaging, distribution and continuing promotional activity. Developments in India’s dairy market are considered in milk price adjustments.

Political Protests

The Bharatiya Janata Party staged demonstrations in Karnataka’s Mandya district against an ₹8-per-litre increase in Nandini milk prices. Reports linked stronger demand for established ghee brands to enforcement against adulterated dairy products in Gujarat and neighbouring Rajasthan. Approximately 200,000 kg of counterfeit ghee had been seized in Gujarat and Rajasthan during the preceding six months, prompting some buyers to turn to branded products. BJP plans demonstrations across Karnataka against the Congress government's increases in bus fares and milk prices. The BJP accuses the administration of transferring the cost of financial mismanagement to the public. The opposition party is critical of the increased transport charges and milk prices under the current government.