Milk production In India reaches 210 MMT in 2021-22

According to data from Food and Agriculture Organization Corporate Statistical Database (FAOSTAT), milk production was 209.96 million tons (MT) during 2020-21 against 198.44 MT in 2019-20. India accounted for 21 percent of the global output. The livestock sector has been growing at a compound annual growth rate (CAGR) of 7.93 percent from 2014-15 to 2020-21. The percentage share of the livestock sector has increased from 24.38 % in 2014-15 to 30.87 % in 2020-21 in the Gross Value Added (GVA) of the agriculture and allied sector. According to the Periodic Labour Force Survey (PLFS) conducted from July 2019 to June 2020, the percentage of people engaged in animal production and mixed farming is 2.85 and 1.58, respectively. The average value of livestock product exports was ₹449 billion, comprising 2.1 percent of the total export earnings, during 2020-21.

Milk procurement prices by private dairies and cooperatives have gone up. It will partially compensate for the increase in the production cost of milk. Prices of dry fodder and cattle feed and concentrates went up drastically in the last three months. During the summer season, milk production also goes down due to heat stress and the non-availability of green fodders. Farmers should adopt cow comfort practices to maintain production levels. Silage should be prepared to feed animals during the summer season. 

Mother Dairy is looking to strengthen its presence in eastern and western India, as it aims to grow its sales at a CAGR of 30 percent over the next five years. Sales were muted during the peak summer months of 2020 and 2021 due to the Covid-induced lockdown. However, the company did not see a decline in sales though there was no growth.

Amul is now developing a portfolio of protein products, starting with Protein Lassi and Protein Buttermilk. Driven by the rise in the post-Covid health-conscious consumer class, Amul has developed a special category of products, which carries protein isolated from liquid whey, derived as a by-product from the cheese manufacturing process. These products will be suitable for all including fitness freaks, the elderly, pregnant women, and children willing to consume protein-rich drinks. With Amul adopting a direct-to-consumer model by launching the products on its website (, a few consumers have created a buzz on social media about the products. Whey comprises water, whey protein, minerals, and other milk solids. Amul — the largest cheese manufacturer — has liquid whey availability of 2.5 million liters per day. Currently, the most popular form of whey protein supplement available in markets is whey powder, which is mostly imported in India and is highly expensive. Unlike these protein powders, which are consumed by mixing with water or milk, the ready-to-drink Amul Protein Lassi or Buttermilk is found to be a more convenient way to fulfill daily protein necessities. In comparison to regular lassi or buttermilk, these products have three to five times more protein. Over the next two-three months, Amul is planning to develop a complete portfolio of protein products that will include high protein shakes, protein water, protein yogurt, protein cookies, protein ice cream, and chocolate. Quoting the India active data, Amul stated that the country’s whey protein market is worth $2 billion (approx ₹15,000 crores) and that it aims to gain a large market share of this segment with its innovative and premium product range, thereby making India “self-reliant” in a category which is majorly import-dependent.

After two consecutive years of lackluster sales in summers, ice cream makers are optimistic about their business this year. The relaxation of Covid restrictions across the country coupled with the prediction of a very hot summer is likely to work well for companies that are expecting 25-30 % growth in sales this year. Many companies have launched direct-to-consumer platforms and are also using delivery aggregator platforms like Swiggy and Zomato. Sri Lanka is now desperately giving feelers to Indian dairy players and the policymakers to help them in the current milk crisis. Sri Lanka had imposed barriers on Indian dairy products imports to protect its local market and cartels. The estimated size of the Sri Lankan dairy market is $400 million, of which the majority is supplied by New Zealand and Australia. It will be a temporary opportunity for Indian companies to supply dairy products to Sri Lanka. In the past, the National Dairy Development Board had helped Sri Lankan Government to improve local milk production, with mixed success.