India may start exporting fresh milk too as dairy products shipments double to Rs 4,700 cr

India’s exports of dairy products have nearly doubled to Rs 4,700 crore this year compared to Rs 2,400 crore in 2021. This is a significant jump from Rs 1,200 crore in 2015. Data shows exports of skimmed milk powder drove the growth in outbound shipment. Sources said that India, the world’s largest producer of milk accounting for about 23 per cent of the total production, is now looking at ways which would help it to ship the dairy product in its fresh liquid form.

“India practically does not export fresh milk due to quality and hygiene issues but companies like Amul have already started to look at ways to enhance its shipping. The issue of meeting global quality standards has been taken up and measures that comply with the standards are likely to be put in place soon,” a person familiar with the development told India Narrative.

“It is at a nascent stage but importantly the process has started,” the person said.

While the world’s milk production currently is growing at 2 per cent, India’s growth rate is more than 6 per cent. The per capita availability of milk in India is much higher than the world average, an official statement said.

Uttar Pradesh, Maharashtra, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan and Tamil Nadu are the primary milk producing states in the country. According to India Brand Equity Foundation (IBEF), competition in the Indian dairy industry has been robust with multiple players including Amul, Mother Dairy, Orissa State Cooperative Milk Producers Federation, Dudhsagar Dairy among others.

Global milk production stood at 906 million tonnes in 2020– up 2.0 per cent from 2019. The Covid 19 pandemic besides rising income levels in many countries pushed demand for dairy products.

The demand for plant based dairy products such as soy and almond milk, non dairy cheese, ice creams and butter are also increasing as a reliable alternative, considered healthier than animal based dairy items.

A McKinsey report in 2021 noted that dairy alternatives will continue to gain popularity, benefiting from health and wellness trends, but not at the expense of traditional dairy.

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