India is on track to significantly expand its dominance in the global dairy sector, with projections indicating it could handle nearly one-third of global milk production within the next decade, according to Jayen Mehta, Managing Director of Amul.
In an exclusive interaction with ET Now, Mehta highlighted India’s transformation from a small cooperative movement into a global dairy powerhouse.
“We started in 1946 with just two village societies and 250 litres of milk per day. Today, we operate across 18,600 villages, handling 350 lakh litres daily,” he said.
India: From Cooperative Roots to Global Dairy Leader
India currently contributes around 25% of global milk production, making it the largest producer worldwide. The success story, Mehta noted, is deeply rooted in the cooperative model pioneered by institutions like Amul.
“In the next decade, India will handle one-third of global milk production. We have a strong opportunity to become the dairy hub of the world,” he added.
Milk Emerges as India’s Top Agricultural Product
In a notable structural shift, milk has overtaken traditional staples to become India’s most valuable agricultural output.
“The value of milk production is higher than wheat, paddy, and oilseeds combined,” Mehta emphasized.
“The value of milk production is higher than wheat, paddy, and oilseeds combined,” Mehta emphasized.
“Milk is a complete superfood. It can be converted into multiple high-value products with strong consumer demand,” he noted.
This shift is expected to drive higher margins and boost sectoral growth.
GST Reforms Driving Sector Growth
Recent reductions in GST on key dairy products such as ghee, butter, cheese, and ice cream have provided a significant push to the organised sector.
“Reducing GST on these products is a landmark decision,” Mehta said, adding that it enhances affordability and encourages formalisation.
Farmer-Centric Cooperative Model
One of the defining strengths of India’s dairy sector remains its farmer-first cooperative structure.
“When a consumer pays ₹100 for an Amul product, over 80% goes back to the milk producer,” he stated.
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This ensures better income distribution compared to many other agricultural sectors.
Private vs Cooperative: Complementary Growth
While private dairy companies focus on profitability and scale, cooperatives prioritize farmer welfare. Mehta believes both models are essential for sector expansion.
“Any organisation that works closely with farmers and delivers quality products will drive growth.”
Outlook: Massive Growth Potential Ahead
With rising demand, policy support, and a gradual shift toward value-added products, India’s dairy sector is poised for exponential growth.
Even a modest increase in organised dairy consumption could unlock huge economic opportunities, positioning India as the global dairy hub in the coming decade.
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