The USDA’s “Dairy: World Markets and Trade” Report

Context

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.