Projections for the Industry
India's dairy industry is expected to maintain a decent 15 per cent compounded annual growth (CAGR) over 2016-20, and attain value of Rs 9.4 trillion, a report said. India's dairy industry is worth Rs 5.4 trillion by value, having grown at 15 per cent CAGR during 2010-16. Going ahead, the dairy industry is expected to maintain 15 per cent CAGR over 2016-20, and attain value of Rs 9.4 trillion on rising consumerism according to the report. . Further, India is expected to emerge as the largest dairy producer by 2020
India has progressed from being deficient in milk production at 20 million MT in 1970 to becoming the world's largest milk producer at 160 million MT, accounting for 18.5 per cent of global milk production.
India is contributing about 20% of world milk production at around 167 million metric tonne and we are growing at the rate of 4.5%. World is growing at the rate of around 1.8%. Out of 1.8% growth, 1% is coming from India. Milk is India’s largest crop worth around Rs 6.5 lakh crore it is much more than paddy and wheat put together. Till the ‘70s, per capita consumption was only 110 gram per person per day. Today, it is 360 gram per person per day and that is really growing.
Value Added Products
The value-added products (VADP) of the Indian dairy industry is at 34 per cent and is likely to grow in the near future thanks to the growing consumerism across the country.India has a potential of 15-30 per cent plus growth in VADP over next few years.