India: Dairy and Products Annual

  |   Attaché Report (GAIN)   |   IN2025-0057
India fluid milk production forecast for calendar year (CY) 2026 is up two percent over 2025. Largely consumed domestically, consumption is forecasted at 221.37 MMT in 2026. For butter, both production and consumption in 2026 are anticipated to increase by three percent over 2025. Though export is expected to rise, it remains merely one percent of total production. All skimmed milk powder production is anticipated to be used domestically due to negligible export. Weaker global prices in contrast to domestic prices limits Indian exports. Primary milk production enablers are expanding the herd size of cows in milk, government support, growing private and cooperative dairy businesses, and a favorable climate. Population growth and increasing disposable income are key determinants for growing demand.

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