Archive · 15 Sep 2025
India's Dairy Industry Faces Trade and Modernization Challenges
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.
India is the world's largest milk producer, but has low yields per cow compared to other nations.
The Indian government is under pressure to open up its dairy sector for trade with the US.
Many Indian dairy farmers use outdated farming practices.
Modernizing dairy practices and better genetics could boost production and farmer profits.
Opening up the dairy market might flood the market with cheap imports, hurting local farmers
- Who
- Indian dairy farmers and the government
- What
- Debate on modernizing the dairy sector and trade deals
- When
- The story unfolds in March 2024, and references prior events like Operation Flood in 1970.
- Where
- India, specifically referencing states like Tamil Nadu and Gujarat; and comparing to US, New Zealand, and Australia
- Why
- India is considering trade pacts and needs to balance domestic dairy interests with global competition.
Protectionist Viewpoint
Free Trade Viewpoint
Impact on Farmers
Protectionist Viewpoint
Opening the market to foreign competitors could cause social upheaval by negatively impacting the income of small dairy farmers.
Free Trade Viewpoint
Increased competition can lead to modernization, efficiency gains, and lower prices for consumers.
Self-Sufficiency
Protectionist Viewpoint
Duty-free imports will see flooding of cheap products, which may compromise India’s self-sufficiency.
Free Trade Viewpoint
N/A
Market access and growth
Protectionist Viewpoint
India should protect its domestic market and dairy farmers from foreign competition.
Free Trade Viewpoint
Foreign countries are seeking access to India’s large and growing dairy market.
- 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