Dairy sector likely to witness positive growth in FY15: Ind-Ra

The dairy sector is likely witness positive growth next fiscal, increase in market size and milk production and strong rise in exports, according to India Ratings & Research (Ind-Ra).

Ind-Ra assigned a positive outlook to the dairy sector for FY'15.

There is likely to be reasonable growth in the sector's market size and milk production and strong growth in dairy products exports, Ind-Ra said in a report here.

India's milk sector is regarded as one of the world's fastest growing market and the agency expects it to expand by 16.3 per cent in FY'15.

The positive outlook also stems from increasing the government's initiatives on improving rural income.

The agency also assigned a stable outlook to the dairy cooperatives (DCs) for FY'15 due to their stable financial performance although with some liquidity issues.

On the back of likely favourable monsoons and strengthening farmer base of the cooperative model, National Dairy Development Board (NDDB) expects 5.47 per cent year-on- year growth in milk production in FY'15.

Export opportunities, it said, have opened up as milk production is higher than domestic demand.

Milk surplus and low production cost coupled with rupee depreciation augur well for exports.