Source: BusinessLine
Context
The USDA’s “Dairy: World Markets and Trade” report forecasts India’s cow’s milk production to rise to 105.4 million tonnes in 2026, from 103.2 mt in 2025. India’s dairy herd is expanding, with cows in milk expected to reach 62.5 million head — the highest among all countries tracked.
Cow Milk vs Total Milk
- The USDA’s 105.4 mt figure is cow’s milk only, which is why the report says India is “second only to the European Union”.
- India’s total milk production, including buffalo, goat and other species, was 247.87 million tonnes in 2024–25 per the Basic Animal Husbandry Statistics 2025.
- India is the world’s largest producer of total milk but the second-largest producer of cow’s milk after the EU.
- Buffalo milk is India’s distinguishing feature — no other major dairy nation depends on it at this scale, and it has higher fat content, which is why India dominates butter production.
Key Highlights:
- India’s Dairy Production
- Milk production reached 247.87 million tonnes in 2024–25, up 3.58% from 2023–24 and about 69% higher than in 2014–15.
- Per Capita Availability
- Milk availability increased to 485 g/day, well above the global average of about 322 g/day.
- Leading Milk-Producing States
- Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra together account for 54.09% of India’s total milk production.
- Economic Importance
- India produces nearly one-fourth of the world’s milk. The dairy sector contributes about 5% of the national economy and provides livelihoods to over 8 crore farmers.
- Global Dairy Outlook
- US butter exports are projected to rise 40% in 2026, EU exports by 10%, while New Zealand is expected to achieve record milk production of 22.5 million tonnes.
- Key Observation
- Despite Amul’s global expansion, the USDA report does not project significant growth in India’s dairy exports, indicating India remains primarily a domestic consumption-driven dairy market.
