India, the world’s leading milk producer with an annual output of approximately 240 million tonnes, contributes less than 0.5% to global dairy exports. This limited export share is attributed to structural challenges within the Indian dairy sector, including a predominant focus on fluid milk, high production costs, and inconsistent quality standards.
In contrast, the United States, producing less than half of India’s milk volume, holds a 6.7% share in global dairy exports. The U.S. export portfolio is diversified, with significant contributions from concentrated and sweetened milk and cream (41%), cheese and curd (36%), and whey-based products (14%). India’s exports are primarily butter and milk fats (40%), with lesser shares in skimmed milk powder (16%) and cheese (15%).
The recent imposition of retaliatory tariffs on American dairy products presents a potential opportunity for India to expand its presence in global markets. However, to capitalize on this, India must address its internal inefficiencies by modernizing processing facilities, enhancing quality control, and aligning with international standards. Without these reforms, India’s ability to fill the void left by U.S. dairy in markets like China remains limited.
Industry Insight:
The current global trade dynamics offer a window for India to bolster its dairy exports. However, realizing this potential necessitates strategic investments in infrastructure, quality assurance, and product diversification to meet the demands of international markets.
Source : Dairynews7x7 MAy 15th 2025 The Economic Times