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India's Dairy Sector

Economic and Political Sensitivity

India is the world's largest producer of milk, accounting for approximately 24% of global milk production. The sector is dominated by smallholder farmers for whom dairy is the primary or supplementary income source.

Key details

Production: India produces approximately 230 million tonnes of milk annually (FY2023-24), up from ~65 million tonnes in 1990-91.
Farmer base: Over 80 million farm households are engaged in dairying; average herd size is 2–3 animals per household.
Cooperative model: The National Dairy Development Board (NDDB) and cooperative networks (AMUL model — Anand Pattern) form the institutional backbone. AMUL (GCMMF — Gujarat Cooperative Milk Marketing Federation) is the world's largest dairy cooperative.
Import tariffs on dairy: India currently levies high tariffs — 30–60% — on dairy imports to protect the sector.
US dairy exports: The US is a major exporter of skimmed milk powder, cheese, and butter; American dairy industry has long sought access to the Indian market.
Operation Flood (1970-1996): NDDB-led White Revolution that transformed India from milk-deficit to milk-surplus — cited as one of the most successful agricultural development programs globally.