India has been the leading producer and consumer of dairy products worldwide since 1998. There had been tremendous growth in the milk and milk products industry in India in recent years. Dairy activities form an essential part of the rural Indian economy, serving as an important source of employment and income. India also has the largest bovine population in the world.
Nearly all of the dairy produce in India is consumed domestically. According to the latest report by IMARC Group, the dairy industry in India reached a value of INR 10,527 Billion in 2019. Looking forward, the market is expected to reach a value of INR 25,491 Billion by 2025, exhibiting a CAGR of around 16%.
As of 2019, India is the leading milk producing country in the world, accounting for around 19% of the global market share. The milk processing industry in India is expected to expand at a compound annual growth rate (CAGR) of about 14.8% between FY 2018 and FY 2023, and will reach INR 2,458.7 Bn in FY 2023.
Dairy industry in the states
Uttar Pradesh, Rajasthan, and Gujarat are the major milk producing states in India. Uttar Pradesh is the largest dairy and milk-producing state. It has the highest buffalo population and the second-highest cattle population in the country. The majority of the rural population in Uttar Pradesh is engaged in livestock rearing and dairying.
Gujarat has numerous cooperative dairy milk unions, private dairy plants, and primary milk cooperative societies, which play crucial roles in the production of milk in the state. Amul, is an Indian dairy cooperative society, based at Anand in Gujarat. It is managed by the Gujarat Co-operative Milk Marketing Federation Ltd., which today is jointly owned by around 3.6 million milk producers in Gujarat