Indian Dairy Biggest contributor to agri GDP

Source: FNB News

The Indian dairy sector is the largest contributor to the agriculture Gross Domestic Product (GDP). In terms of output, milk is now the single largest agricultural commodity in India. Currently, around 46 per cent of the milk is consumed in the form of liquid milk, 47 per cent as traditional dairy products and 7per cent as Western dairy products. The value-added versions like ghee, butter, yogurt, paneer, cheese, along with a cornucopia of flavoured milks, ice creams, UHT processed milk and shredded and liquid cheese is making the sector an attractive for growth.

The dairy industry in India is currently estimated to be about 130 million tons and is expected to grow at 4-5% per annum. The projected value of the industry is about Rs 500,000 crore, which includes Rs 160,000 crore from liquid milk, Rs 45,000 crore from ghee, Rs 50,000 crore from khoa / chhana / paneer, Rs 10,000 crore from milk powder, Rs 300 crore from table butter, Rs 8,000 crore from cheese / edible casein and the balance from other products.

The other significant feature is that within the 30 per cent overall share of organised dairies, the major 20 per cent of that will be accounted for by the private sector. The cooperatives and government dairies will handle 10 per cent which will be lower than that of the organised private sector. The milk consumed by the rural population and the producer families remains in the unorganised sector and this anomaly will continue to show in India when compared to the other dairy advanced countries, according to Vijayabhasker Reddy, consultant, Fresh Ideas, Hyderabad.

There are more than 550 plants in the country with about 175 in the north, about 50 in east about 120 in south and west, accounting for more than 200.

The leading dairies in country are Gujarat Cooperative with Amul brand, Karnataka Milk Federation (KMF) with Nandini brand, Mahanand Dairy (Mahanand), Tamil Nadu Co-operative Milk Producers' Federation Limited with Aavin brand, Heritage, Nilgiri Dairy Farm Pvt Ltd, Hatsun with Arokya brand, Cavinkare Dairy, GRB Dairy, CreamLine Dairy and Parag Milk Foods, Tirumala Milk Products, Gokul and Sridevi Milk Products.

Mulkanoor Women's Mutually Aided Milk Producers Cooperative Union is the first women's co-operative in the country and globally. It is located in Bheemdevarapally mandal in Karimnagar district.

The Indian dairy sector is now in a phase of consolidation and dairy- owners are looking for acquisitions for which it is also scouting for private equity and venture capital infusions, stated representatives from KMF, Nilgiri Dairy Farm and GRB Dairy.

Reddy stated that the dairy sector in the country is poised to take off only if the right inputs are put in place. As of now, it is at crossroads. “Do we go the way we have been going through or do we seek the model of the advanced / developed countries in the field of dairying,” he queried.

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