Aspects and implications of Dairy development in India

Abstract

 India is the world’s largest producer and consumer of milk and has the world’s largest dairy herd, comprised of Asiatic buffalo and indigenous and crossbred cattle. Annual growth in milk production and consumption has been a robust 4.2 percent since 2000, and India has also emerged as a small net exporter of dairy products.  Asiatic Buffalo and crossbred cattle account for all of the growth in the dairy herd and milk production, but average milk yields remain well below both international standards and those achieved under domestic best practices. Future production prospects depend heavily on productivity gains, primarily through improved breeding and feeding practices, and demand for feeds and improved genetics may offer opportunities for increased trade. India’s dairy cooperatives have played a key role in expanding milk and milk-product marketing, and private-sector processors may play an increasingly important role in catalysing more production of both milk and milk products. India’s future role as a trader in dairy products is uncertain because there is significant scope for future growth in both production and consumption. Recent trade behaviour indicates that domestic dairy price stability is a key priority, with policy facilitating either imports or exports depending on domestic market conditions. Most dairy products imported into India are currently subject to certification that source animals have never been fed materials of ruminant origin, effectively prohibiting access for most U.S. dairy products.