One of the most optimistic developments is the projection by CRISIL Ratings that the organised dairy sector will witness stronger revenue growth of 13 to 15% in FY27, driven by increasing demand for milk and value-added dairy products such as cheese, butter, yoghurt, and ghee. This reflects changing consumer preferences and rising incomes. The organised sector is no longer merely collecting and processing milk; it is transforming into a diversified food industry that delivers nutrition, convenience, and premium products. But few experts question whether India’s official 6% milk production growth target for FY27 is realistic due to regional supply constraints.
Assam is set to boost sustainable development with a new compressed biogas plant. The National Dairy Development Board (NDDB), Suzuki R&D India, and North East Dairy and Foods Ltd. have partnered to convert agricultural and dairy waste into clean biogas and organic fertiliser. This initiative promises to enhance rural livelihoods and promote scientific waste management. The project is also expected to create an additional source of income for farmers by generating value from agricultural and dairy waste.
Banas Dairy is expected to commission its fourth dairy plant in Uttar Pradesh at Mitli in Baghpat district in the next 18 months. The plant will process 16 lakh litres per day of milk. The Baghpat project forms a key part of Banas Dairy’s strategy to strengthen dairy infrastructure and expand access to major consumer markets across north India. Once operational, the plant will process milk and manufacture a wide range of Amul value-added dairy products, catering primarily to the fast-growing Delhi NCR market. The project is expected to create a stronger and more efficient dairy value chain, providing milk producers with improved market access and reducing dependence on intermediaries.
However, this optimism is tempered by concerns over rising milk prices. Heat stress, uncertain monsoon conditions, higher feed costs, and fodder shortages continue to affect milk production. These challenges highlight a simple truth: India’s dairy economy is inseparable from climate resilience. Improving fodder availability, promoting climate-smart livestock management, conserving water resources, and enhancing animal health must become national priorities if milk production is to keep pace with growing demand.
The recently announced trade deal between the UK and India will bring fewer benefits and potential threats for our dairy sector. UK dairy farmers and our dairy sector should be exporting nutrient-rich, sustainably produced dairy goods to India to support the country both nutritionally and in helping reduce its carbon footprint. Unfortunately, there are no reductions on tariffs for our dairy exports to India while its dairy imports will come here tariff-free. From a dairy perspective, this is a case of disappointingly poor negotiation by the UK Government. The Indian dairy sector is hugely ambitious. While under Sanitary and Phytosanitary requirements, Indian dairy goods would currently struggle to meet UK standards, its intention to become a major exporter of dairy products is well known. Under the terms of this agreement, dairy produce could have tariff-free access to the UK in the future. That is a serious concern for the sector.
The ongoing India–New Zealand Free Trade Agreement (FTA) negotiations are focusing heavily on integrating advanced New Zealand agricultural and farm-management technologies into India’s sector, rather than opening the floodgates to direct dairy imports.
The most transformative trend is the increasing adoption of Artificial Intelligence and digital technologies in dairy farming. From digital animal identification and health monitoring to precision feeding, disease prediction, reproductive management, and milk quality assessment, AI is steadily moving from pilot projects to practical farm applications. Data-driven dairy farming has the potential to improve productivity while reducing costs and enhancing animal welfare. The future dairy farmer will increasingly rely not only on experience but also on real-time data and intelligent decision-support systems.
India’s Food and Drug Administration (FDA) uncovered a massive racket where an estimated 2.3 crore litres of chemical-laced synthetic milk (made from low-grade milk powder, detergent, shampoo, and palm oil) entered the regional supply chain via a 10% dilution trick with genuine milk. Simultaneous raids across 5 districts in Maharashtra led to a ₹1.48 crore asset seizure and the destruction of thousands of litres of adulterated milk.
The first White Revolution focused on increasing milk production. The next phase must focus on creating a smarter, more resilient, technology-enabled, and sustainable dairy ecosystem. Artificial Intelligence, precision livestock farming, biotechnology, digital traceability, renewable energy, and skilled human resources will shape the future of the livestock industry.