Milk production in India

Milk production in India

Milk production in India forms one of the largest and most vital components of the country’s agricultural economy. India has achieved remarkable progress in this sector, evolving from a milk-deficient nation in the mid-twentieth century to the largest producer of milk in the world, contributing over 23% of global milk output. This transformation has been driven by cooperative movements, scientific breeding, improved veterinary services, and government initiatives aimed at achieving nutritional security and rural livelihoods.

Historical Background and Development

Prior to independence, India’s dairy sector was largely unorganised, with low-yield indigenous cattle and inadequate infrastructure for milk collection or processing. The situation began to change after independence, as the government recognised the importance of dairy development for improving rural incomes and nutrition.
The real breakthrough came with the launch of Operation Flood in 1970 by the National Dairy Development Board (NDDB) under the leadership of Dr. Verghese Kurien, often called the Father of the White Revolution in India. Operation Flood was a multi-phase programme that transformed the country’s dairy sector by:

  • Establishing a national milk grid linking rural producers with urban markets.
  • Setting up a network of milk cooperatives owned and managed by farmers.
  • Enhancing milk collection, processing, and marketing infrastructure.

By the 1990s, Operation Flood had made India self-sufficient in milk production and set the stage for sustained growth in the following decades.

Current Scenario

India is currently the world’s largest milk producer, surpassing countries like the United States, China, and Pakistan. According to the Department of Animal Husbandry and Dairying, India produced approximately 230 million tonnes of milk in 2022–23, with an annual growth rate of about 5–6%, significantly higher than the global average.
The per capita availability of milk in India has increased from about 112 grams per day in 1968–69 to over 450 grams per day in 2023, reflecting both increased production and improved distribution.
The major milk-producing states include:

Together, these states contribute over 70% of the country’s total milk output.

Sources of Milk Production

Milk in India is produced from a variety of dairy animals, primarily:

  • Cows (both indigenous and crossbred) – The largest contributors to milk production.
  • Buffaloes – Known for high-fat milk, they account for around 48–50% of total milk output.
  • Goats and sheep – Contribute a smaller share, mainly in arid and hilly regions.
  • Camels and yaks – Locally important in desert and Himalayan regions respectively.

Buffalo milk is particularly valued for its high-fat content and is a key raw material for products like ghee and khoa. Crossbreeding programmes have enhanced the productivity of both cow and buffalo breeds through improved genetics and management practices.

Government Programmes and Policy Initiatives

The Government of India has launched several schemes to support and sustain the growth of the dairy sector:

  • National Programme for Dairy Development (NPDD) – Aims to create and strengthen infrastructure for milk procurement, processing, and marketing through cooperatives.
  • Rashtriya Gokul Mission (RGM) – Focuses on conservation and genetic improvement of indigenous cattle and buffalo breeds.
  • National Dairy Plan (NDP) – Phase I and II – Implemented by the NDDB to increase productivity of milch animals and provide rural milk producers with greater market access.
  • Dairy Entrepreneurship Development Scheme (DEDS) – Provides financial assistance to individuals and groups for setting up modern dairy farms and processing units.
  • Animal Husbandry Infrastructure Development Fund (AHIDF) – Supports private sector investment in dairy processing, chilling, and value-added product manufacturing.
  • e-GOPALA App – A digital platform for farmers providing information on breeding, nutrition, and animal health services.

Role of Dairy Cooperatives

The cooperative model has been instrumental in the success of India’s dairy industry. The Amul cooperative movement in Gujarat became the model for Operation Flood, inspiring similar networks across the country. Today, there are over 1.9 lakh dairy cooperative societies with around 17 million farmer members, a majority of whom are women.
These cooperatives enable:

  • Fair and regular income to farmers through assured milk procurement.
  • Collective ownership and participation in processing and marketing.
  • Empowerment of women in rural areas, as they form the backbone of dairy farming.

Technological and Scientific Advancements

Modern dairy farming in India integrates multiple technological and scientific innovations:

  • Artificial insemination and genetic improvement to enhance milk yield and disease resistance.
  • Balanced feeding practices using mineral mixtures and fodder management.
  • Cold chain infrastructure to prevent spoilage during storage and transportation.
  • Automation and digitalisation in milk collection, testing, and payment systems.

Research institutes such as the National Dairy Research Institute (NDRI), Karnal, and the Central Institute for Research on Buffaloes (CIRB), Hisar, contribute to advancements in dairy science, nutrition, and breeding.

Economic and Social Significance

The dairy sector is a cornerstone of India’s rural economy:

  • It contributes nearly 5% of the national GDP and over one-fourth of the agricultural GDP.
  • Provides livelihood to more than 80 million rural households, most of them small and marginal farmers or landless labourers.
  • Serves as a source of daily cash income and nutritional security, especially for women and disadvantaged groups.
  • Plays a vital role in reducing rural-urban income disparities by ensuring year-round income unlike seasonal crop farming.

Challenges in Milk Production

Despite its achievements, the dairy sector faces several challenges:

  • Low productivity of indigenous breeds compared to international standards.
  • Feed and fodder shortages, particularly during dry seasons.
  • Inadequate cold chain and processing infrastructure, leading to wastage.
  • Price volatility affecting farmers’ incomes.
  • Adulteration and quality control issues in the unorganised sector.
  • Climate change impacts on animal health, fodder supply, and water availability.

Addressing these challenges requires improved breeding programmes, enhanced veterinary services, sustainable feeding systems, and investment in rural dairy infrastructure.

Emerging Trends and Future Prospects

The future of milk production in India lies in diversification, value addition, and sustainability. Key emerging trends include:

  • Growth of the private dairy sector alongside cooperatives, expanding export potential.
  • Increasing demand for value-added dairy products such as cheese, yoghurt, probiotic drinks, and milk powders.
  • Rising focus on organic and A2 milk, reflecting changing consumer preferences.
  • Adoption of digital traceability systems and automation technologies for quality assurance.
  • Development of climate-resilient dairy systems through improved breed management and renewable energy use.

The government’s vision under the National Action Plan for Dairy Development (Vision 2030) aims to increase milk production to 300 million tonnes by 2030, improve per-animal productivity, and strengthen export competitiveness.

Originally written on June 10, 2011 and last modified on October 25, 2025.

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