As President of the Indian Dairy Association, it is my privilege to share insights on the current trends, challenges, and opportunities in the Indian dairy sector. Recent discussions and industry reports highlight key areas of focus for both farmers and consumers, emphasizing the critical role of the dairy industry in India's socio-economic framework.

Over the past two years, milk prices have risen by only Rs.4 per litre, reflecting a modest growth of 7-8%. While inflation in food prices stands at around 9%, milk price inflation remains remarkably low at 2.5%. This limited increase underscores the industry's efforts to maintain affordability for consumers while balancing farmer needs.

In several states, milk producer organizations have expressed the need for a price increase of Rs. 2 - 5 per litre, driven by rising input costs. Farmers are under significant financial pressure due to inflation and reduced income from milk sales. Notably, many farmers today receive Rs. 4 - 5 less per litre than they did two years ago, further exacerbating their challenges.

The demand for dairy products continues to evolve, with notable differences between rural and urban areas. Rural consumers typically rely on locally produced milk, while urban and Tier-2 cities drive demand for valueadded products such as ice cream, cheese, paneer, and sweets.

However, the overall growth rate in demand for both fresh and value-added dairy products has slowed, declining from 8-10% in previous years to 3-4% in 2024-25. Factors such as reduced consumer purchasing power and changes in expenditure patterns contribute to this decline. Despite these challenges, dairy products remain more resilient compared to other food categories, thanks to minimal price increases.

Looking ahead, the outlook for the upcoming summer season is optimistic. Volume growth for dairy products is projected to rebound to 6-7% in 2025, driven by stable pricing and increasing consumer demand. The extended summer season in 2024 boosted demand for ice cream, with many brands reporting 10-15% volume growth. While off-season demand for ice cream, lassi, and curd naturally declines during winter, expectations for a robust summer demand remain high, supported by the expanding availability of these products.

India, as the world's largest milk producer, accounts for nearly 25% of global milk production. Despite this achievement, dairy exports remain a fraction of the industry's potential, valued at approximately Rs. 2,500 crore to Rs. 4,000 crore annually. This limited export volume stems from challenges such as higher domestic commodity prices and international trade barriers.

To unlock export opportunities, the industry must:

• Enhance Cost Competitiveness: Reduce production costs to match global price benchmarks, enabling competitive exports of products like skimmed milk powder and fat.

• Improve Quality Standards: Focus on ensuring product quality to meet stringent international requirements.

• Address Trade Barriers: Collaborate with global trade bodies to reduce entry barriers and secure market access in key dairy-importing countries.

India's long-term dairy growth projections are ambitious, with estimates suggesting production could reach 520 million metric tons by 2047. To achieve this, the sector must prioritize sustainable practices, technological advancements, and strategic partnerships.

The Indian dairy industry stands at a pivotal juncture, balancing the needs of farmers, consumers, and global markets. While inflationary pressures and demand fluctuations pose challenges, the resilience and adaptability of the sector offer a pathway to sustained growth and prosperity. Through collaborative efforts, we can ensure that dairy continues to serve as a vital tool for livelihood, health, and nutrition, both within India and on the global stage.

In its endeavour to global collaboration, The Indian Dairy Association (IDA) had the privilege of hosting a delegation from the Association of Cooperative Dairy Farms (ALCO Cooperative), France, at our office in New Delhi. The delegation, which included farmers and industry representatives, engaged in enriching discussions about the dairy sectors of India and France.

It was particularly inspiring to have the French Dairy farmers in the delegation, who shared their practices, challenges, and innovative approaches to dairy farming. Hearing first-hand about their experiences highlighted the shared global challenges faced by dairy farmers and the importance of knowledge exchange to address them effectively.

The discussions also focused on India's dynamic dairy sector, its growth trajectory, innovations, and cooperative structures. Such collaborative engagements strengthen global partnerships and underscore the collective responsibility to support and empower farmers, ensuring a sustainable future for the dairy industry.

The Indian Dairy Association (South Zone) proudly organized the maiden Southern Dairy Summit from January 9-11, 2025, at the NIMHANS Auditorium, Bengaluru. The summit saw overwhelming participation, with over 900 delegates, 28 distinguished speakers, and more than 400 farmers from across the country attending this landmark event.

During the three-day summit, the program featured Techno-Commercial Presentations, scientific sessions, and cultural events, all highlighting the significance of innovation, sustainability, and collaboration in the dairy sector. I was fortunate to deliver a keynote address during the inaugural session of the summit, emphasizing the role of technological advancements and sustainable practices in shaping the future of the industry. A virtual inauguration of the poster session and the release of the Summit Souvenir added to the event's key moments.

The scientific sessions comprised seven engaging discussions led by 28 speakers, covering diverse topics such as dairy production, processing, and quality assurance. A key highlight of the summit was the Best Women Dairy Farmer Award which was coveted Women dairy farmers of Southern India, celebrating excellence in dairy farming practices. Best poster prizes were also distributed, showcasing the research and creativity of participants.

The summit concluded on a high note, reinforcing its role as a platform for recognizing achievements and fostering growth in the dairy sector.