India’s Dairy Sector Forecasts 1% Herd Growth and 2.2 MMT Milk Production Increase in 2025 with Government Support
Key Factors Driving Growth
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Government Support for Dairy and Livestock Sectors
The Indian government’s increased budget for the fiscal year 2024-25 includes significant allocations to enhance dairy infrastructure, animal breeding, healthcare, and fodder availability. By offering both financial and technical assistance, the government provides critical support for dairy farmers through low-interest credit options for livestock purchases, technical upgrades, and marketing and quality control improvements. This financial support not only promotes the industry but also ensures stable livelihoods for dairy farmers. -
Improving Milk Yields
While India's milk yield still trails other leading producers, advances in breeding, healthcare, and access to quality feed are contributing to improved yields across both indigenous and crossbred cow herds as well as buffalo sectors. This trend is expected to continue supporting India’s milk production growth in the coming years. -
Attractive Occupation with Competitive Pricing
Rising milk prices continue to position dairy farming as a rewarding occupation in India. In regions with established dairy cooperatives, farmers benefit from fair procurement prices, which cover production costs and often include bonuses. Additionally, government-backed programs are facilitating loans to cooperatives, helping them offer competitive prices that make dairy farming more sustainable and attractive. -
Favorable Weather Patterns
India’s Metrological Department (IMD) reported above-normal rainfall from June to September 2024, which increased fodder availability and optimized crop conditions for dairy farming. This abundance of forage resources, combined with expectations of a cool winter and another strong monsoon season in 2025, further supports the nation’s milk production outlook. -
Minimal Disease Disruption
Although certain livestock diseases like Foot and Mouth Disease (FMD) and Brucellosis remain, the dairy sector saw resilience following the 2023 outbreak of Lumpy Skin Disease (LSD), which had impacted cattle mortality. No major disease outbreaks are anticipated in 2025, supporting a stable production environment.