Dairy farming in India- Present status and future prospects

Dairy farming in India- Present status and future prospects

 Dr. Vaddeswarapu Keerthi

Assistant Professor

Dept of Livestock Production Management

Institute of Veterinary Science and Animal Husbandry

Siksha ‘O’ Anusandhan (DU)

Bhubaneswar, Odisha-751003

Abstract

Dairy farming in India plays an important role in terms of economy, employment and alleviating poverty in rural areas. India is the top milk producer in the world which is possible because of a vast livestock population. Export potential of dairy has been increasing from year to year. Different schemes have been initiated in India to modernise the dairy sector and to reduce the economic and technical challenges faced by farmers involved in dairy farming. Increase in the demand for dairy products leads to technological advancements such as precision livestock farming and genomics to enhance production and efficiency.

Key words: Dairy farming, Milk production, Indian economy, Challenges, Scheme

Introduction

Importance of dairy in daily life

Milk is a good source of high biological value proteins with polyvalent roles in immune function, as well as nutrient transport and absorption and important vitamins and essential minerals.Milk consumption is important in all age groups as it helps in the structural development of skeleton and maintenance of intestinal microflora which helps in digestive process and it also helps in promoting absorption of calcium.

Role of dairy in Indian Economy

India being the agricultural based country, livestock sector becomes the backbone of the nation’s development in terms of economy. Livestock sector is an integral component for rural livelihoods and contribution of livestock in total agriculture GVA and country’s total GVA at current prices is 31% and 5.5% respectively (BAHS, 2023-24).

India is the largest milk producing country in the world with a production of 247.87 MMT at an Annual growth rate (AGR) of 3.58 during 2024-25. The per capita availability of milk has also increased from 471 to 484 grams at an AGR of 2.97 during 2024-25. India is contributing 25% in global milk production during 2023. India is top producer of milk with production growing at a 5.41% Compound Annual growth rate (CAGR) (from 2014-15 to 2024-25) and at a 5.62 CAGR over the past decade (Fiscal yr 2023-24) (Source: Ministry of Fisheries, AH and dairying).

Milk production trends in India

According to census the milk production in India increased from 239 MMT to 247.87 MMT during 2024-25.

According to latest census (2024-25) the species wise milk production in India is tabulated below

State wise milk production in India:

Livestock development programmes in India

1. Rashtriya Gokul Mission (RGM)

 It was established in 2014, focused on the protection and improvement of indigenous cattle breeds. The primary aim is to increase milk production ability and improve the genetic quality of livestock. Modernization of dairy practices to make farming a more profitable venture for those living in rural areas. Financial support of ₹2400 crores has been allocated to sustain these efforts through to 2026, ensuring the continued growth of high-quality indigenous stock. Ultimately, this mission serves as a important tool for poverty alleviation and meeting the nation’s increasing nutritional requirements.

2. National livestock mission (NLM)

• The Department of Animal Husbandry & Dairying, Government of India is implementing the scheme of National Livestock Mission since the financial year 2014-15. It is implemented under three submissions

1. Sub-mission on breed development of livestock and poultry.
2. Sub-mission on feed and fodder development.

• Sub-mission on Research and development, Livestock insurance, Extension and Innovation.
• It mainly aims for employment generation, entrepreneurship development, increase in per animal productivity and thus targeting increased production of meat, goat milk, egg and wool under scheme Development Programme.

3. The Livestock Health and Disease Control Program

• It is a strategic national initiative managed by the Indian government to protect and maintain the well-being of the livestock.
• Mainly focussing on mass vaccinations and sophisticated disease monitoring, the scheme aims to reduce biological risks within the agricultural sector. Thereby increase the productivity and economicefficiency of animal husbandry by ensuring livestock remain healthy and resilient.
• The programme also prioritising the development of modern veterinary infrastructure and the provision of essential medical services across the region.
• Overall, this centrally funded project serves as a critical framework for maintaining animal health security and supporting the livelihoods of those dependent on dairy and farming

4. National programme for dairy development

• This programme mainly aims to create, strengthen and expand milk procurement network and also conducting training to create awareness on quality and clean milk production.

5. Animal husbandry infrastructure development Fund (AHIDF)

• The Animal Husbandry Infrastructure Development Fund was a strategic financial initiative by the Government of India.
• It offers incentives to individual entrepreneurs, private companies, MSME, Farmers Producers Organizations (FPOs), Section 8 companies and dairy cooperatives to upgrade facilities for dairy, meat, and animal feed production.
• There by focuses on expanding processing capacities and diversifying products to ensure rural farmers gain better access to organisedmarkets and higher profits. There are several government initiatives in India designed to modernise the livestock and dairy industries.

6. Supporting dairy cooperatives and farmer Producer organisation (SDCFPO)

• The scheme was launched during 2017-18 and it was being implemented through National Dairy Development Board (NDDB).
• The objective of the scheme is to assist the Cooperative Societies and farmer producer organizations engaged in dairy activities by providing soft working capital loan to survive over the crisis on account of severely adverse market conditions or natural calamities.

7. National gopal ratna award

• The Department of Animal Husbandry and Dairying under the Ministry of Fisheries, Animal Husbandry and Dairying, was making all out efforts for the development of Animal Husbandry and Dairy sector to provide sustainable livelihood to the farmers.
• Under Rastriya Gokul Mission (RGM), since 2021 the department has been conferring National Gopal Ratna Award every year with an objective to encourage the Milk producing farmers rearing Indigenous bred, dairy cooperative societies/MPC/FPOs and Artificial Insemination Technicians.

Economic and marketing aspects of Dairy farming

Demands for milk and dairy products

• Acc to IMARC, The dairy market is valued at INR 21,318.5 billions in 2025 is projected to reach INR 58,034 Billion by 2034 with a CAGR OF 11.8% during 2026-2034.
• The liquid milk is the most dominant segment with a share of 65.30% in 2025, supports the daily household consumption and nutritional value.
• The milk products such as ghee, curd, panner also hold significant share.
• Uttar Pradesh leads all states at 18.70% market sharein 2025, benefiting from the country’s largest dairy animal population and well-developed cooperative networks.

Role of cooperatives and organised sector in dairy farming

• The cooperative plays a significant role in dairy farming in India.
• The Anand Pattern Dairy Cooperatives is an integrated multi-tier structure that procures milk, processes, and markets milk and milk products. This pattern helps to link the producers directly with the consumers, thereby eliminating mediators’ role.

Challenges in Dairy farming in India

• Apart from the economic significance, the sector plays a vital role in ensuring food and nutritional security, especially through the daily consumption of affordable dairy products.
• Despite remarkable growth since the mid-20th century driven by initiatives such as Operation Flood and the rise of dairy cooperatives the sector faces persistent structural and ecological challenges. These include low milk yields from indigenous breeds, chronic feed and fodder shortages, inadequate veterinary infrastructure, climate change-induced stress, and limited access to financial and institutional resources. Furthermore, regional disparities and gender inequities continue to undermine the inclusive potential of dairy development.

Future prospects

• Increase in the demands for livestock products both domestically and internationally presenting a promising outlook for growth and development in dairy sector in India.
• Increase in production generates income and employment.
• Acc to IMARC, The dairy market is valued at INR 21,318.5 billions in 2025 is projsected to reach INR 58,034 Billion by 2034 with a CAGR OF 11.8% during 2026-2034 driven primarily by increasing demands for dairy products, meat and eggs.
• Government schemes like National livestock mission (NLM), Rashtriya Gokul mission (RGM) plays a major role in fostering dairy sector growth.
• Technological advancements such as precision livestock farming and genomics are to enhance production and efficiency.

Conclusion

Dairy farming in India has a very significant role. The strengthening of dairy sector is needed as demand for milk and milk products is increasing in India. Schemes, programmes and trainings has been made available to the farmer to reduce the economical and technical challenges faced by farmers which will further helps in growth of dairy sector in India.

References

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