India Poised to Boost Dairy Exports As Milk Output Hits New High
Despite producing nearly a quarter of the world’s milk, India has been a marginal player in global dairy exports — responsible for only about 0.25% of global dairy trade even as the world market tops $33 billion annually.
Official data shows India’s milk production surged to an estimated 247.87 million tonnes in FY25 and is projected to reach around 260 million tonnes in FY26, highlighting that production scale is no longer the constraint it once was. India’s dairy shipments jumped sharply in FY25, scaling around $490 million in export value with volumes exceeding 113,350 tonnes, compared with about $273 million the year before — an 80% growth in export earnings.
While exports remain concentrated in a narrow basket — with ghee, butter and SMP accounting for nearly three-fifths of shipments — there are emerging signs of diversification, particularly in value-added cheeses where exports jumped more than 1,200% year-on-year in early fiscal 2026, and brands like Amul have begun selling packaged milk in U.S. retail outlets such as Costco.
Industry experts say the next phase of growth will need India to shift from volume at source to quality and compliance-led exports, focusing on building global brands, improving cold chains and traceability, and complying with stringent standards to unlock markets in West Asia, ASEAN and Africa.
The dairy sector’s expanding role comes amid projections that India could capture up to 32% of global milk supply by FY26, underscoring the potential for stronger export performance if structural challenges in processing and market access are addressed.
Source : Dairynews7x7 Dec 26th 2025 Read full article here