India's Dominance in the Global Dairy Industry
India stands as a powerhouse in the global dairy sector, accounting for over 24% of the world's total milk supply. The country's extensive livestock base, featuring approximately 192 million dairy cattle and 135 million dairy goats, cements its position as a leader in dairy production.
Milk Production and Processing
For the fiscal year 2023-2024, India's milk production reached an impressive 239.3 million tonnes. The processing sector is equally robust, handling between 65 to 70 million tonnes annually. Key products include cheese, with a production of 90,000 tonnes, and milk powder and whey, each around 600,000 tonnes annually.
Key Dairy Enterprises
Significant players in the market include Amul, Mother Dairy, Milky Mist, Parag Milk Foods, and Yakult Danone India, among others. These enterprises are central to India's dairy economy, driving innovation and market growth.
Trade Dynamics
India exports approximately 100,000 tonnes of dairy products annually, while importing around 50,000 tonnes. High tariffs protect local farmers, impacting export-import dynamics. India's dairy industry is a major obstacle in the nation's global trade agreements due to its protectionist policies.
Noteworthy Market Events
Recent developments feature Milky Mist's planned IPO valued at ₹20,000 crore, and Mother Dairy's projected turnover of ₹17,000 crore by FY 2025. Parag Milk Foods reported a 27% profit increase in ghee and cheese, and Yakult Danone India launched 'Yakult Light Mango', aiming for a 50% sales boost. The World Dairy Summit is scheduled to be hosted by India in 2027.
Future Outlook
The Indian dairy market is on a growth trajectory, with plans for the world's largest curd facility in Kolkata and biogas implementation in 250 districts. Focus areas include technological modernization, value-added products, and export diversification.
Regional Contributions and Challenges
Gujarat contributed 18.31 million metric tonnes in 2024, while Karnataka's daily collection reached 1.06 crore litres. Challenges include financial strains due to falling 'toori' prices in Punjab and the re-emergence of Lumpy Skin Disease.
Technological and Sustainability Advancements
In Namakkal, a ₹90-crore high-tech dairy plant is nearing completion, benefiting over 15,000 farmers. The paneer market is evolving, driven by brands like Amul and Mother Dairy towards a ₹2 trillion market by 2033. Sustainability efforts include Delhi's new biogas plant processing 200 tonnes of waste daily.
Strategic Investments and Consumption Patterns
Amul's ₹10,000 crore investment plan aims to expand processing and distribution capabilities. Changes in GST rates on dairy products from 12% to 5% have shifted industry expectations, enhancing rural incomes through the Milk Producer Support Scheme.
Innovation and Industry Events
The First Indian Cheese Festival 2025 at the NDDB in Gujarat marked a significant event. The GST Council's tax reforms have made dairy products more affordable, aligning with GST 2.0 reforms during the festive season.
Environmental and Economic Challenges
Kerala faces a crisis with rising production costs outpacing milk prices, threatening the viability of dairy farming. Meanwhile, tax incentives are boosting domestic demand amid international trade pressures. The donkey milk market in Hyderabad is becoming lucrative, selling for an unparalleled ₹6,667 per litre due to traditional medicinal beliefs.
Strategic Developments
Nestlé India commits to a $600 million expansion with a new factory in Odisha, marking a significant step in enhancing production capabilities. Additionally, Union Home Minister Amit Shah recently inaugurated the Sabar Dairy Plant in Rohtak, Haryana, which is set to distribute dairy products throughout the Delhi–National Capital Region.
Modified: 2025/10/07