Economy

Trends in India’s Dairy Sector

September 30, 2025 2 min read

Why in news?

The government released new data showing that India produced 239 million tonnes of milk in 2023‑24, reinforcing its position as the world’s largest milk producer. The figures coincide with the launch of the “White Revolution 2.0” cooperative initiative, which aims to significantly expand milk procurement and promote sustainability.

India’s rise to dairy dominance

India’s milk production has increased by more than 60% over the past decade. Programmes such as Operation Flood (1970s onward) created a cooperative network linking farmers to processing plants. The National Dairy Development Board (NDDB) and the leadership of Verghese Kurien empowered millions of small dairy farmers. Milk production rose from 146 million tonnes in 2014‑15 to 239 million tonnes in 2023‑24, giving India roughly a quarter of global output. Per capita availability is now 471 grams per person per day, well above the world average.

Structural features of the sector

White Revolution 2.0 and sustainability

Launched in September 2024, the second White Revolution aims to set up 75 thousand new cooperatives by 2028‑29 and to double daily milk procurement. It emphasises a circular economy: cattle feed production uses crop residues, and dung is processed into biogas and organic fertiliser. The initiative also prioritises climate‑resilient fodder crops and the conservation of indigenous breeds. Adoption of 5G‑ready technologies will allow real‑time monitoring of animal health and supply chains.

Opportunities and challenges

Growing urban demand and rising incomes present opportunities for farmers. However, dairy remains vulnerable to climate variability, fodder shortages and animal diseases. Sustainable practices, access to credit and training in value‑added processing will be critical. As India integrates its dairy sector with global markets, quality standards and traceability will determine export success.

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