Milk market in Southern Asia

Earlier Report Observations

The milk market in Southern Asia entered a period of sustained expansion starting in 2018, when the central government allowed 100% foreign direct investment via the automatic route for milk and dairy products. This policy attracted new private and international companies to build processing plants, directly increasing production capacity. Concurrently, government initiatives like the National Milk Day, which set a 6% annual target for milk collection, further stimulated output. Even the supply chain disruptions from COVID-19 in 2020 were offset by central and state-level subsidies that supported small producers, ensuring market growth continued uninterrupted.

Growth accelerated from 2021 onward, driven by significant state-level interventions and national budgetary support. The government of Himachal Pradesh announced an additional price of ₹3 per liter and the construction of four new milk-processing plants, incentivizing regional production expansion. In the same year, the national budget established a ₹15,000 crore fund specifically for financing new milk plants and dairy farms, which directly scaled up production infrastructure across the country and solidified the market's upward trajectory.

The momentum was maintained through 2023 and 2024 by continued capital infusion and policy consolidation. The 2023 budget provided ₹7,500 crore in subsidized loans for small dairy farmers, facilitating the entry of new players. Subsequently, in the 2024 budget, key development programs like the National Gokul Mission were merged and allocated dedicated funding, focusing on technology upgrades and investment in the dairy sector, which supported the steady annual increase in market volume.

Production milk in Southern Asia

In kind, 2017-2020, M t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in Southern Asia has grown for the third year in a row. In 2020, the region produced 292.9 million tonnes of milk, showing a modest 5.4% increase from 2019. Looking at the period from 2017 to 2020, production rose by 16.7%, with an average annual growth rate of 5.3%.

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

Exports milk from Southern Asia

Exports in kind, K t

After two years of decline, Southern Asia's milk exports rebounded in 2020. Exports reached 165.7 thousand tonnes, up 21.7% from 2019. Over the 2017-2020 period, exports fell by 3.8%, with a compound annual growth rate of -1.3%. The lowest point was in 2019 at 136.1 thousand tonnes, while the sharpest drop occurred in 2018 with an 18.2% decrease.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, the main destinations for Southern Asia's milk exports were Iraq, Russia, and the United Arab Emirates. Iraq accounted for 42.9% of exports, Russia for 5.1%, and the UAE for 2.3%, together making up 50.3% of total export volumes.

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

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

Exports in value, M $ US

Following a two-year decline, Southern Asia's milk exports in value terms increased in 2020. Exports amounted to 200 million US dollars, a moderate 6.7% rise from the previous year. Over the 2017-2020 period, export value dropped by 42%, with an average annual decline of 16.6%. The lowest value was recorded in 2019 at 188 million US dollars, and the largest decrease occurred that same year with a 32.4% fall.

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

Between 2017 and 2020, the primary buyers of Southern Asia's milk in value terms were Iraq, Russia, and Syria. Iraq represented 44.9% of export value, Russia 6.2%, and Syria 4.5%, collectively accounting for 55.5% of total export earnings.

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

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

Imports milk to Southern Asia

Imports in kind, K t

Milk imports into Southern Asia fell for the second consecutive year in 2020. Imports totaled 305.0 thousand tonnes, a moderate 7.0% decrease from 2019. Over the 2017-2020 period, imports declined by 5%, with an average annual drop of 1.7%. The peak was in 2018 at 362.3 thousand tonnes, while the largest decline happened in 2019 with a 9.5% reduction. The biggest increase occurred in 2018 with a 12.9% rise.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, three key suppliers—New Zealand, the United States, and Australia—dominated Southern Asia's milk imports, together making up 55.3% of total import volumes.

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

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

Imports in value, M $ US

Imported milk volumes in Southern Asia continued to decline for the second year in a row in 2020. Imports reached 869 million US dollars, down 3.7% from 2019. Over the 2017-2020 period, import value fell by 8.1%, with an average annual decrease of 2.8%. The highest value was in 2018 at 1 005 million US dollars, with the largest drop in 2019 at 10.2% and the biggest increase in 2018 at 6.3%.

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

Throughout 2017-2020, New Zealand, the United States, and Turkey were the core sources of Southern Asia's milk imports in value terms. New Zealand accounted for 55.9%, the US for 5.3%, and Turkey for 3.5%, together comprising 64.7% of total import value.

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

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