11 months ago

India's Dairy Industry Faces Trade and Modernization Challenges

India's Dairy Industry Faces Trade and Modernization Challenges
Cows vs trade deals: The battle for India’s milk market · livemint.com

Imagine India makes lots of milk, more than anyone else!

But most farmers have only a few cows and don't make much money.

Now, other countries want to sell their milk here.

Some people think this could hurt Indian farmers who are already struggling.

The government is trying to help farmers by modernizing farming, but they need to decide if they want to let in milk from other countries to protect local farmers.

It's a bit like choosing whether to let in new toys when you already have plenty at home.

Key facts

India's Milk Production (2024-25)
248 million tonnes
India's Milk Consumption (2024-25)
243 million tonnes
Share of milk production in India's GDP
31%
Global Milk Production Share
India produces 26% of the world's milk
Average herd size in the US
300 cows
Average herd size in India
3-4 cows

Quotes

M.P. Veeramani

An executive at Akshayakalpa.

“After milking, the udder pores remain open. The animal could get infected in a dirty shed. Once infection sets in, they take months to recover and milk output drops.”
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“His father still believes growing paddy should be the main source of income and is against expanding the dairy business, despite dairy making more money.”
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R.S. Sodhi

President, Indian Dairy Association (IDA) and the former managing director of Gujarat Co-operative Milk Marketing Federation.

“In the mid-1990s, India allowed a small portion of edible oil to be imported. Cheap imports came in and Indian farmers stopped growing oil seeds and today, we import 65% of our needs.”
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“Operation Flood also made India the largest producer of milk in the world accounting for 26% of the global output.”
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K. Rathnam

Chief executive officer (CEO) of Milky Mist Dairy.

“All we need to do is to get more from less. In other words, get more milk from fewer cows.”
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“We are no match for them.”
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Sashi Kumar

Founder & CEO, Akshayakalpa.

“They do not follow any modern practices when it comes to herd and feed management.”
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“In the US, the average herd size is 300. In India, it is just three to four cows.”
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Raj Kumar

A dairy farmer.

“I want to add another five cows and eventually take the milk output to 200 litres.”
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IDA’s Sodhi

R.S. Sodhi, President, Indian Dairy Association.

“It is not surprising that the world wants access to the biggest and fastest growing dairy market.”
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Milky Mist’s Rathnam

K. Rathnam, chief executive officer (CEO) of Milky Mist Dairy.

“Allowing duty free imports will see flooding of cheap products. This will hurt milk procurement. Farmers will shift away from the dairy sector. This will compromise India’s self-sufficiency and milk prices will start rising.”
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Mukesh Saxena

Senior analyst, India Ratings & Research.

“Three years ago, Indian exports happened at break-even price levels. Now, Indian brands are beginning to get good margins. It is clear evidence that they are becoming competitive in a market dominated by global brands. India is set to become a prime player in the global dairy sector.”
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Sources

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