Indian Dairy Sector Remains Stable Amid West Asia Conflict

The Indian dairy industry has maintained stable operations and pricing despite the geopolitical tensions in West Asia, according to a government statement. Puja Rustagi, director in the Department of Animal Husbandry and Dairying, noted that there have been no disruptions in the supply of essential materials such as fuel, gas, and plastic packaging to the sector. She highlighted that milk procurement and processing have continued without interruption, and payments to farmers remain consistent.

India, which is the world's largest milk producer, recorded a total milk production of 247.87 million tonnes during the 2024-25 period. To further ensure stability, the government has advised dairy industries to transition from LPG to piped natural gas wherever feasible.

In response to the situation, the Ministry of Petroleum and Natural Gas issued an order on April 8, 2026, ensuring that critical industries, including dairy processing plants, receive 70% of their pre-March 2026 bulk non-domestic LPG supply. This measure has been crucial in preventing disruptions in dairy operations.

Rustagi also mentioned that there are no shortages in plastic packaging materials, with supplies of polypropylene and polystyrene being secured. The department is closely working with suppliers to guarantee smooth distribution across the country. Additionally, a dedicated portal launched on March 30, 2026, assists in monitoring the availability of milk, fuel, and packaging materials for the industry.

Regarding exports, the government has simplified the animal quarantine clearance procedure as of March 25, 2026, to facilitate the easy return of exported cargo to Indian ports. This action aims to ease the export processes during these challenging times.