President's Desk

Securing Farmer Income in a Volatile Market Environment

First and foremost, I extend my heartfelt gratitude to all members of the Indian Dairy Association (IDA) for entrusting me with the opportunity to serve as your President. It is an honour I accept with humility and deep commitment, and I pledge to work tirelessly alongside all stakeholders - farmers, cooperatives, processors, scientists and policymakers - to take our Association and India's dairy sector to the next level.

As we transition into 2026, India's dairy sector stands upon strong fundamentals while navigating a rapidly evolving global and domestic landscape. India's leadership in milk production remains undisputed. According to the Basic Animal Husbandry Statistics 2025, published by the Department of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry & Dairying, Govt. of India, the country produced an estimated 247.87 million tonnes of milk in 2024-25, marking a 3.58 % increase over the previous year and reaffirming India's position as the world's largest milk producer. Per capita milk availability has risen to 485 g/day-a testament to sustained domestic production growth and strong consumer demand. Top contributing states include Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra, collectively accounting for over 54 % of country's total milk output.

These national achievements build on the decade-long growth story, with milk production rising from 146.3 MT in 2014-15 to 239.3 MT in 2023-24, underscoring dairy's expanding role in rural economies and nutrition security.

Yet the underlying dynamics of the sector reveal complex pressures and opportunities – both at home and abroad.

Global Production Trends and Price Dynamics
While global milk output continues to expand, supply growth has outpaced demand in many major producing regions, creating emerging pricing pressures. Recent international dairy price indices, including the IFCN World Milk Price Index, indicate that global milk prices have softened as production remains strong and global commodity markets adjust. Lower prices for key dairy commodities, such as butter and skim milk powder, have contributed to this trend.

Analyses from multiple global dairy information sources further points to a classic oversupply scenario, in which synchronized production growth across major exporting countries is exerting downward pressure on dairy commodity prices. This trend has been linked to softened demand in certain Asian markets, alongside broader supply expansions that continue to outpace growth in global dairy trade.

For India, these global price shifts carry mixed implications:

  • On the export front, softer dairy prices have intensified competition in commodity segments such as milk powders and fats. Without competitive cost structures, Indian dairy exporters may face tighter margins in international markets.
  • Domestically, evolving global price trends could influence procurement pricing dynamics, particularly in regions contributing to exportable surpluses. This underscores the need for strategic coordination among cooperatives, processors and policy frameworks to ensure farm-gate prices remain equitable.
  • At the same time, moderated commodity prices can translate into more stable consumer retail pricing in importing markets – a trend that underscores the importance of strengthening value-added and branded dairy product portfolios in both domestic and international markets.

Evolving Consumer Demand and Product Premiumisation
On the domestic market front, consumer preferences are evolving rapidly. The premiumisation trend - evidenced by rising demand for high-protein yogurts, fortified paneer, artisanal cheeses, and functional dairy beverages – is particularly strong in urban and emerging semi-urban markets. This demand aligns with global projections that forecast continued growth in specialty dairy segments. The macro-demand tailwinds, supported by demographic shifts and rising incomes, remain robust despite periodic price fluctuations.

Strategic Priorities for IDA in 2026
In light of these dynamics, IDA's strategic agenda under my leadership will concentrate on three integrated pillars:

  • Strengthening Procurement and Farmer Income Security
We will champion transparent, formula-based procurement systems that are more systematically linked to milk components such as fat and SNF, thereby incentivising quality and ensuring fair returns to producers. Scaling access to cost-reducing inputs – including fodder development, disease management, digital milk collection infrastructure, and feed-efficiency initiatives – remains critical.

  • Enhancing Value-Addition and Market Readiness
While India's sheer scale provides a formidable domestic base, our future growth will be driven by value-added production and export competitiveness. Processors must accelerate their offerings in premium categories such as speciality cheeses, high-value whey derivatives, infant-nutrition dairy inputs, and fortified dairy products. Investment in quality systems, global certifications, logistics infrastructure, and brand building will be crucial to carving out a stronger share in global markets.

  • Future-Proofing Through Innovation and Sustainability
Dairying must be both profitable and environmentally responsible. IDA will support investments in efficient chilling logistics, digital procurement platforms, genetic improvement and feed-conversion efficiency, as well as methane-reduction initiatives and circular economy models (such as whey-to-bioethanol and dung-to-bio-CNG projects). Sustainability is increasingly becoming a prerequisite for market access and value recognition in global markets.

Charting the Path Forward: 52nd Dairy Industry Conference
As we embark on a new phase of growth and collaboration, I warmly invite all members, stakeholders, industry leaders, researchers, entrepreneurs, and start-ups to join us at the 52nd Dairy Industry Conference (DIC). Building on the enthusiasm generated through IDA's Industry Connect Programmes across major cities, the 52nd DIC promises to be one of the most engaging and forward-looking platforms for our sector – featuring plenary sessions, technical tracks, exhibitions, B2B forums, and interactions with national and international experts.

For full details on registration, technical sessions, exhibitions, sponsorships, and programme highlights, please visit www.52dic.in.

Let us come together at the 52nd DIC to celebrate our shared achievements, deliberate on critical issues, and forge collaborative pathways toward building a stronger, more innovative, and globally competitive Indian dairy sector.

As I embark on this journey with you, I reaffirm the core belief that the future of dairy in India lies in people-centred growth – farmers must remain central, and their welfare align with enterprise growth and consumer benefit. With strong domestic demand, evolving export opportunities, and structural transformation underway, we have a unique window to elevate Indian dairying from volume leadership to value leadership.