Dairy remains committed to sustainability and environmental consciousness

The Foreign Agricultural Service (FAS) of the US Department of Agriculture in New Delhi projects that India's overall milk production will reach 216.5 million metric tonnes (MMT) by 2025.

- Suchetana Choudhury

This increase is linked to a larger herd of milking animals, enhanced governmental backing for the dairy industry, the anticipated persistence of favorable weather, elevated milk prices, and no significant disease outbreaks.

The anticipated increase in milk supply is projected to enhance the production of butter and nonfat dry milk (skim milk powder (SMP)), with these products expected to achieve 7.2 MMT and 0.8 MMT, respectively. Demand-driven elements such as an increasing population, higher disposable income, and various physical factors are propelling the domestic consumption of fluid milk, butter, and SMP, anticipated to hit 91 MMT, 7.1 MMT, and 0.8 MMT, respectively.

Custom Markets Insights forecasts that Indian Dairy Market (valued at $131.5 billion in 2024) is expected to reach $290.8 billion by 2033, at a CAGR of 8.01 per cent during 2024 – 2033. Further Crisil anticipates a revenue boost of 13-14 per cent for FY 2024-25, fuelled by strong consumer demand and better raw milk supply. Dairy plays a pivotal role in supporting the Indian economy by ensuring nutritional security, addressing challenges of hunger and malnutrition in the country and generating employment opportunities.

It is quite interesting to note, that, while global milk production is growing at a steady rate of 2 per cent, India showcases growth in milk production by an impressive rate of 6 per cent.