Milk market in India

Earlier Report Observations

Milk production in India entered a period of steady expansion from 2018 onward. The growth gained momentum in 2019 when a sharp rise in milk procurement prices, driven by tighter international skimmed-milk-powder prices and increasing cattle feed costs, provided farmers with stronger incentives to increase output. This upward trend continued through 2020 despite the COVID-19 pandemic's supply-chain disruptions, as organized dairies expanded their procurement networks to stabilize supply and manufacturers flexibly converted surplus milk into powder and cheese to maintain operations.

The growth trajectory was further supported by significant government initiatives launched in 2021, including the Production-Linked Incentive (PLI) scheme for dairy processing and the restructuring of the National Programme for Dairy Development (NPDD), which channeled investments into chilling infrastructure and value-added product capacity. Although the lumpy-skin disease outbreak in 2022 raised production costs and slightly tempered the pace of expansion, milk output still reached a new high. By 2023, the full implementation of the NPDD and state-level policies like the Uttar Pradesh Dairy Policy 2022, offering subsidies for new processing plants and cold-chain logistics, helped drive production to 239.3 million tonnes.

Production milk in India

In kind, 2017-2020, M t

From 2017 to 2020, India held the top position globally in milk production.

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in India grew for the third year in a row. In 2020, the country produced 210.0 million tonnes of milk, representing a modest increase of 5.8% compared to the previous year. Over the 2017-2020 period, production rose by 19.3%, with an average annual growth rate of 6.0%.

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

In value, 2017-2020, B $ US

Following a two-year decline, milk production in India rebounded. In 2020, the output was valued at 384.7 billion US dollars, marking a strong rise of 22.2% from 2019. However, over the 2017-2020 period, production decreased by 5.1%, with an average annual growth rate of 1.7%. The lowest value was recorded in 2019 at 314.7 billion US dollars, while the largest decline occurred in 2018 at 15.0%.

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

Exports milk from India

Exports in kind, t

The market experienced significant fluctuations during this period. Exports peaked in 2018 and hit their lowest point in 2020, with a threefold difference between these years. In 2020, India's foreign milk supplies amounted to 18 412 tonnes, a drop of 26.6% from the previous year. The maximum value was recorded in 2018 at 54 693 tonnes. The largest decline occurred in 2019 at 54.1%, while the largest increase was in 2018 at 159.7%.

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

From 2017 to 2020, Bangladesh, Bhutan, and Afghanistan were the top destinations for India's milk exports in kind, accounting for 25.4%, 24.5%, and 10.2% of the total, respectively. Together, these three countries made up 60.1% of all 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, M $ US

The market showed an unstable trend throughout the timeframe. Export values fluctuated threefold between the high in 2018 and the low in 2020. In 2020, India exported 33.7 million US dollars worth of milk, a decrease of 15.3% from the previous year. The maximum value was recorded in 2018 at 100.4 million US dollars. The largest decline occurred in 2019 at 60.3%, while the largest increase was in 2018 at 107.1%.

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

From 2017 to 2020, Bangladesh, Bhutan, and Afghanistan were the leading destinations for India's milk exports in value terms, representing 27.5%, 22.7%, and 14.3% of the total, respectively. Collectively, these three countries accounted for 64.5% of all 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 to India

Imports in kind, t

India's milk import volumes declined for the third consecutive year. In 2020, imports stood at 1 150 tonnes, which is 17.3% lower than the previous year. Between 2017 and 2020, imports decreased by 46.5%, equating to an annualized rate of 18.8%.

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

From 2017 to 2020, three key markets—France, Bhutan, and New Zealand—together accounted for 56.8% of India's total milk imports in kind.

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, M $ US

In 2020, India's milk import volume reached 3.3 million US dollars, an 11.8% decrease year-over-year. Between 2017 and 2020, imports fell by 37.1%, with an annualized rate of 14.3%. The largest decline was recorded in 2018 at 36.3%, while the largest increase occurred in 2019 at 12.0%.

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

From 2017 to 2020, France, New Zealand, and Belgium led the structure of India's milk imports in value terms, accounting for 26.6%, 17.5%, and 9.9% of the total, respectively. Together, these three countries represented 54.1% of all 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