India’s Dairy Sector Balances Sustainability and Self-Sufficiency

On World Milk Day 2025, India reflects on its dairy sector’s role in rural livelihoods and nutrition while addressing sustainability, climate resilience, and modernization.

World Milk Day 2025-  As World Milk Day is observed globally on June 1, India finds itself at a defining moment in the journey of its dairy industry. While the sector remains a cornerstone of rural income and nutrition, it must now navigate the dual challenges of sustainability and climate adaptability.

India holds the title of the world’s largest milk producer, accounting for nearly a quarter of global output — a feat driven primarily by smallholder farmers and rural households. Yet, with rising concerns over climate change and environmental impact, there’s a growing urgency to evolve towards a more resilient and eco-conscious dairy system.

The dairy industry plays a pivotal role in India’s rural economy, contributing over 6% to the national GDP and providing livelihoods to more than 80 million people. According to Dr. T.P. Sethumadhavan , an expert in animal sciences and rural entrepreneurship, about 12–14% of India’s agricultural income stems from milk and dairy-related activities. The current per capita milk consumption in the country stands at 479 grams per day — significantly above the global average.

Globally, the dairy industry faces scrutiny over its greenhouse gas emissions, particularly methane. However, India’s dairy landscape, characterized by smaller and decentralized farms, emits comparatively lower levels than the industrial-scale operations found in developed nations. Dr. Sethumadhavan emphasizes that India is actively embracing eco-friendly measures — from preserving native breeds and encouraging low-emission practices to integrating science and technology in dairy farming. These steps are critical for securing the future of milk production in an increasingly climate-affected world.

The sector, however, is not without its challenges. The cost of cattle feed has increased by over 240% in the past three decades, while milk prices have not kept pace, rising only about 68%. Moreover, only about 28% of India’s milk supply is handled by organized processors and cooperatives. The rest remains in informal markets, where maintaining hygiene, nutritional standards, and safety remains a persistent concern. Kerala leads in dairy modernization, with nearly 96% of its cattle being crossbred — far higher than the national average of 30%. While crossbreeding enhances yield, India is also committed to conserving its indigenous breeds, which are more resilient to climate stress and disease.

Livestock health remains a critical vulnerability. The year 2024–25 saw a sharp 10% dip in national milk output due to disease outbreaks and climate-related stress. Common infections such as mastitis, foot-and-mouth disease, and lumpy skin disease inflict heavy losses, with mastitis alone causing annual damages worth ₹14,000 crore.

To ensure long-term growth, the sector requires targeted support — particularly for women farmers, micro-entrepreneurs, and smallholders. Investments in disease surveillance, cold-chain infrastructure, quality control, and smart dairy technologies are the need of the hour.

With Indian dairy brands like Amul making their mark internationally, the industry is rapidly transforming into a competitive global player. However, experts caution against misinformation — especially in the A1 vs A2 milk debate. Scientific clarity, not marketing hype, must guide consumer choices and industry practices.

This World Milk Day, India’s dairy sector stands not only as a symbol of self-sufficiency but also as a space where tradition and innovation must come together — to build a healthier, more sustainable tomorrow.

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