Datanomics: India's milk production increases faster than consumption

Union Home and Cooperation Minister Amit Shah laid the foundation stone of a dairy plant worth Rs 255 crore in Madhya Pradesh on October 3

Home Minister Amit Shah on October 3 laid the foundation stone of a dairy plant worth ₹255 crore in Madhya Pradesh, highlighting the growing role of dairy infrastructure. India has over 800 dairy plants. Milk production rose from 176 million tonnes (mt) in FY18 to 230 mt in FY23, and is likely to reach 266 mt in FY27. The share of milk consumed of the  total production fell from 90 per cent to 87 per cent and then to 83 per cent over the same period. Meanwhile, dairy processing plants accounted for 50-53 per cent of milk production between FY18 and FY27, while the rest was produced through traditional methods. Despite higher milk production, India’s trade surplus in dairy products has shrunk in value terms. The country recorded a trade surplus of $49 million in FY18, which rose to $152 million in FY22 before plunging to $42 million in FY26. This may be due to muted global milk prices. Domestically, inflation in milk remained subdued since 2024.