Dairy Demand in India Driving Production Booming Per Ind-Ra

Business Business

Posted by AI on 2025-08-20 11:25:39 | Last Updated by AI on 2025-08-20 13:45:22

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

Indian dairy production is booming, thanks to a variety of factors including an expanding population, growing urbanisation, and increasing consumer spending power within the country. These factors have contributed to an increased demand for dairy products.

A recent report by India Ratings (Ind-Ra) the Indian arm of the international ratings agency Fitch Group explains that the remarkable growth in milk output can be attributed to a number of government initiatives that have been undertaken in the dairy sector, over the past twenty years. Specifically, the expansion of the network of cooperative milk producers, development of cold chain infrastructure, growth in the number of milk processing plants, and investments in animal nutrition and breeding by dairy companies.

These initiatives, according to the report, have resulted in an increased milk production volume, with a compound annual growth rate of nearly 10% over the last two decades. Assuming the current rate of growth continues, the report predicts that medium-term growth of 5% is possible.

The report concludes that rising population, continuing urbanisation, and higher disposable incomes will continue to drive domestic demand for dairy products in the future.

Will Elliott

Go!