Milk and cream market in India

Earlier Report Observations

The Indian milk and cream market experienced steady volume growth, rising from 191.2 million tonnes in 2018 to 247.1 million tonnes in 2023. This expansion was primarily driven by substantial government investment in dairy processing infrastructure, starting with the Dairy Processing and Infrastructure Development Fund in 2018-19, which financed new state-level plants and value-added units. The National Dairy Development Mission further supported cooperatives in expanding cooling and raw material supply networks from 2019 onward, directly boosting production capacity.

Regulatory changes and private sector initiatives reinforced the upward trend. The GST Council's move to apply a 0-5% tax rate on milk and cream in 2021 reduced production costs for manufacturers. Concurrently, major players like Amul and Mother Dairy invested in large-scale greenfield plants for fresh cream in 2022, increasing dedicated capacity for non-concentrated cream by 12-15%. The FSSAI's ongoing updates to quality standards and mandatory digital traceability also bolstered market integrity and consumer trust.

Market value recovered after a 2019 dip, aided by cooperative pricing policies that stabilized regional prices. The confirmation of a zero GST rate for non-concentrated milk and cream under the 2023 packaging regulations, alongside periodic price adjustments by leading dairies to offset rising feed costs, supported the value growth to 199.9 billion USD by 2023.

Production milk and cream in India

In kind, 2017-2020, M t

From 2017 to 2020, India maintained its position as the world's leading producer of milk and cream by volume.

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

India's milk and cream production has grown for three consecutive years. In 2020, the country produced 214.2 million tons, a 6.0% increase from the previous year. Between 2017 and 2020, production rose by 19.5%, representing an annualized growth rate of 6.1%.

Annual dynamics of production in India in kind, 2017-2020, M t

In value, 2017-2020, B $ US

In 2020, the value of milk and cream output in India reached 167.4 billion US dollars, showing a modest increase of 9.6% compared to the previous year. Over the 2017-2020 period, production value grew by 11%, with a compound annual growth rate of 3.6%. The largest decline occurred in 2019 at 7.7%, while the highest increase was in 2018 at 9.8%.

Annual dynamics of production in India in value, 2017-2020, B $ US

Exports milk and cream from India

Exports in kind, t

Following two years of growth, India's milk and cream exports declined. In 2020, exports totaled 10,841 tons, a 21.2% decrease from the previous year. Between 2017 and 2020, exports increased by 30%, with a compound annual growth rate of 9.1%. The peak volume was recorded in 2019 at 13,758 tons, which also saw the largest annual increase of 50.2%.

Annual dynamics of product's exports from India in kind, 2017-2020, t

From 2017 to 2020, Bhutan, Singapore, and Nepal were the leading destinations for India's milk and cream exports by volume. Bhutan accounted for 50.5% of exports, Singapore for 24.7%, and Nepal for 14.0%. Together, these three countries represented 89.2% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, K $ US

After two years of growth, India's milk and cream exports in value terms declined. In 2020, exports amounted to 8,473 thousand US dollars, an 18.6% decrease from the previous year. Between 2017 and 2020, exports increased by 20.8%, with an annualized growth rate of 6.5%. The highest value was recorded in 2019 at 10,404 thousand US dollars, which also experienced the largest annual increase of 31.2%.

Annual dynamics of product's exports from India in value, 2017-2020, K $ US

During the 2017-2020 period, Bhutan, Singapore, and Nepal accounted for the largest share of India's milk and cream exports by value. Bhutan represented 47.2% of exports, Singapore 23.2%, and Nepal 13.2%. Collectively, these three markets made up 83.6% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports milk and cream to India

Imports in kind, t

Import volumes showed significant volatility during these years. Volumes reached their lowest point in 2020 at 274 tons, a 51.9% decrease from the previous year, while the peak was in 2018 at 1,478 tons. This represents a 5.4-fold difference between the high and low points. The largest decline occurred in 2019 at 61.5%, and the largest increase was in 2018 at 111.0%.

Annual dynamics of product's imports to India in kind, 2017-2020, t

From 2017 to 2020, Bhutan, France, and Ireland were the key sources for India's milk and cream imports by volume. Bhutan accounted for 45.5% of imports, France for 20.6%, and Ireland for 16.6%. Together, these three partners represented 82.8% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, K $ US

Import values exhibited considerable volatility during this period. The value dropped to its lowest in 2020 at 668 thousand US dollars, a 53.9% decrease year-over-year, while the peak was in 2018 at 1,670 thousand US dollars. This represents a 2.5-fold variation between the high and low points. The largest increase occurred in 2018 at 89.0%.

Annual dynamics of product's imports to India in value, 2017-2020, K $ US

Throughout 2017-2020, France, Bhutan, and Ireland remained the main sources for India's milk and cream imports by value. France accounted for 45.6% of imports, Bhutan for 21.0%, and Ireland for 8.3%. Collectively, these three markets represented 74.9% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020