India’s dairy industry is poised for another year of strong expansion, with the organised sector expected to register 13–15% revenue growth in FY2026–27, driven by rising consumer demand, greater consumption of value-added dairy products, and improved price realisation. However, industry experts caution that climate change is emerging as one of the biggest threats to sustaining this growth, as rising temperatures, erratic rainfall, and fodder shortages increasingly disrupt milk production across the country.
Climate Change Reshaping Dairy Farming
The sector, which supports millions of rural households, is witnessing the growing impact of prolonged heatwaves, irregular monsoon patterns, and declining fodder availability. These climate-related challenges are no longer isolated seasonal events but are becoming persistent structural risks affecting the entire dairy value chain.
Experts note that dairy farming has traditionally depended on predictable weather conditions. With climate variability intensifying, maintaining consistent milk production has become increasingly difficult for farmers.
Heat Stress Reduces Milk Yield
Veterinary and dairy specialists explain that heat stress significantly affects cattle health and productivity. During extreme temperatures, animals consume less feed and water, leading to lower milk yields, weakened immunity, and reduced reproductive efficiency.
“Heat stress not only decreases milk production but also increases the risk of disease, placing additional financial pressure on dairy farmers,” industry experts observe.
Fodder Crisis Raises Production Costs
Erratic rainfall and prolonged dry spells have also affected the cultivation of green fodder. Lower fodder availability and declining nutritional quality have forced farmers to rely on costlier feed alternatives, increasing production expenses while limiting productivity.
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The combined impact of heat stress and fodder shortages is making it increasingly challenging for dairy producers to maintain stable milk supplies.
Sustainability Must Drive Future Growth
Industry stakeholders believe that India’s next phase of dairy growth must be built on climate resilience alongside productivity improvements. Experts recommend expanding climate-smart dairy practices, including:
- Heat stress management through improved housing, cooling systems, and water availability.
- Development of drought-resistant fodder crops and efficient fodder conservation techniques.
- Better animal nutrition and herd health management.
- Greater adoption of climate-resilient technologies and precision dairy farming.
These interventions can help farmers adapt to changing climatic conditions while safeguarding milk production and profitability.
Outlook
While demand for milk and dairy products continues to rise, the industry’s long-term success will depend on how effectively it addresses climate-related risks. As India’s dairy sector enters its next phase of expansion, building resilience against heatwaves, fodder stress, and extreme weather will be as important as increasing production, ensuring sustainable growth for farmers, processors, and consumers alike.
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