India’s dairy export sector is witnessing rapid growth, yet it remains significantly under-leveraged despite the country being the world’s largest milk producer.
With annual milk production exceeding 230 million tonnes, India exports only a small fraction of its output, as the majority is consumed domestically, highlighting a structural imbalance between production and global trade participation.
Dairy exports have shown strong momentum, with shipments (HS codes 0401–0406) rising sharply to $484.84 million in FY2024-25—more than doubling from $221 million in FY2022-23, reflecting a 119% increase in just two years.
The export basket is heavily skewed toward value-added products, with butter and ghee accounting for 78.3% ($379.6 million), followed by cheese and curd at 10.4% ($50.5 million), while liquid milk exports remain minimal.
Key export markets include the Middle East, Bangladesh, UAE, Nepal, and Bhutan, driven largely by strong demand from diaspora populations and growing global interest in traditional products like ghee.
However, India’s share in the global dairy trade remains marginal—around 0.25%—despite its dominant production base, due to high domestic consumption, fragmented supply chains, and gaps in quality compliance and cold-chain infrastructure.
Industry experts highlight that the future of India’s dairy exports lies in scaling value-added products such as skimmed milk powder, dairy ingredients, and processed foods, rather than raw milk.
While opportunities are significant, exporters must navigate strict international regulations, ensure quality certifications, and invest in logistics and packaging to compete globally.
As global demand for protein-rich and functional dairy rises, India’s ability to convert its production strength into export competitiveness will determine whether it can transition from a volume leader to a meaningful player in global dairy trade.
Source: Dairynews7x7 21 April, 2026 Read full story here
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