India has consolidated its position as the world’s largest milk producer, with production climbing from 146.3 million tonnes in 2014-15 to 239.3 million tonnes in 2023-24, marking an impressive 63.6% growth in less than a decade. Per capita milk availability has risen to 471 grams per day, surpassing the global average of 394 grams per day. This growth highlights India’s strong cooperative network and policy support that have kept the dairy sector resilient amid changing consumption patterns.
Tamil Nadu has emerged as one of the most dynamic dairy markets in the country. The state’s annual milk production has expanded from 8.75 million tonnes in 2020 to 10.8 million tonnes in 2024, driven by both cooperative and private sector participation. Tamil Nadu now ranks 4th in cooperative milk procurement, underscoring its growing institutional strength in organized dairy collection and marketing.
The state’s dairy market, currently valued at around ₹1,38,070 crore (2024), is projected to reach ₹4,23,700 crore by 2033, reflecting a robust CAGR of 14.54%. This growth trajectory not only reaffirms Tamil Nadu’s place in India’s dairy expansion story but also signals rising consumer demand for value-added dairy products and improved cold-chain infrastructure.
Industry Insight:
This data underscores two important shifts: first, the growing dominance of organized dairy in both production and procurement, which is lifting incomes and stabilizing supply chains. Second, Tamil Nadu’s rising importance—not just in volume but in organized processing and cooperative strength—shows that states with robust cooperative infrastructure and private sector participation are better positioned to benefit from rising demand for dairy. For policy makers and investors, the clear implication is that further investment in supply chain infrastructure, feed quality, veterinary services, and cold logistics will be crucial both to sustain growth and to manage cost pressures (for both farmers and consumers).
SOURCE : DAIRYNEWS7X7 OCT 6TH 2025 TOI