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India Dairy Industry in Trouble as Export Doubles and Prices Increase - Delhi
Monday, 28 November, 2022
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Delhi
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In recent years, the Indian dairy industry has been in trouble due to a doubling of exports and an increase in prices. While the country is the world's largest producer of milk, it is also one of the largest consumers. The government has been working to increase export of dairy products from India to improve the balance of trade, but this has led to increased prices for domestic consumers. The main drivers of the Indian dairy industry are smallholder farmers, who account for over 70% of production. The sector is highly fragmented, with around 19 million milk producers. The industry employs around 6 million people directly, and indirectly supports the livelihoods of millions more. Dairy products are an important part of the Indian diet, and milk is the most consumed food item. Per capita consumption of milk in India is higher than in any other country, at around 240 grams per day. While this is lower than the global average of 266 grams per day, it is still significant. The majority of milk produced in India is used for drinking, while a smaller proportion is used for making butter, ghee, cheese, curd, and other dairy products. Around 12% of milk produced is exported.