India is the world’s top milk producer with a 24 per cent share of global production.
Chennai: While dairy imports from the US remains a major stalemate in a trade deal with the US, India, the largest producer of milk, has been growing its dairy exports, and it saw 80 per cent growth in FY25. India is the world’s top milk producer with a 24 per cent share of global production. However, its contribution to the global dairy trade remains low at 0.25 per cent due to high domestic consumption.
India has embarked on its journey to becoming a significant exporter in the global dairy market. In FY25, India exported 113,350.4 metric tonnes of dairy products worth $492.9 million, up 77.9 per cent in volume and 80.6 per cent in value. Butter and clarified butter showed 142 per cent growth in exports to 67,565 tonnes against 27,837 tonnes in the previous year. Milk and cream also have been moving up, though at a slower pace than butter and ghee. However, milk powder exports at 9,700 tonnes are considerably down compared to FY22 levels of 49,654 tonnes, finds India Ratings and Research.
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Products such as fermented milk also rose in exports. Major export destinations for Indian milk products include the United Arab Emirates, Bangladesh, United States of America, Saudi Arabia, and Bhutan. Major importers of milk products are Gujarat Cooperative Milk Marketing Federation, Mother Dairy, The Punjab State Cooperative Milk Producers’ Federation, Bihar State Milk Co-operative Federation, and Britannia. Ind-Ra projects India’s milk output to grow 5 per cent y-o-y in the near to medium term. From 251 million tonnes in FY25, production can go up to 263 million tonnes in FY26 and 277 million tonnes in FY27. Milk production stood at 198 million tonnes in FY20. India’s per capita milk availability will grow by 4 per cent and touch 530 grams per day by FY27.
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