As we move through 2025, India's dairy sector finds itself at a defining moment. The industry, long rooted in tradition, is embracing transformation–driven by shifts in consumer demand, technological innovation, and evolving market dynamics. From improving farm-level efficiencies to venturing into value-added nutrition, the dairy sector is balancing heritage with forward-looking strategies. Against this backdrop, I am pleased to announce that the 52nd Dairy Industry Conference (DIC) - the flagship event of the Indian Dairy Association–will be held from 12th to 14th February 2026 at the worldclass Yashobhoomi Convention Centre, New Delhi.

The central theme of this year's conference, "Empowering Rural India through Dairy Entrepreneurship," reflects our collective vision of using dairy as a tool for livelihood, nutritional security, and self-reliance. This theme underscores the pivotal role of the sector in enabling entrepreneurship among farmers, youth, and women, while also addressing the broader goals of rural employment and social empowerment. I invite all stakeholders – farmers, dairy professionals, scientists, researchers, policy makers, and industry leaders – to join us at the conference and contribute to the continued evolution of Indian dairy.

A key focus emerging within this transformation is the rise of protein-led innovation in the dairy sector. India, like many developing economies, is witnessing a growing convergence of health consciousness, innovation, and policy support. The average Indian consumes only around 70.5 grams of protein per day, which is below global recommendations. As milk and dairy are already well-integrated into our food habits and cultural identity, leveraging them to bridge this protein gap is both logical and necessary.

This nutritional imperative is fast becoming an economic opportunity. According to market intelligence, including projections by IMARC, India's milk protein market – valued at USD 241 million in 2024 – is expected to grow to USD 400 million by 2033, with whey protein witnessing particularly strong demand. What was once considered a by-product is now taking center stage. Encouraged by sectoral development initiatives, many dairies are now investing in whey processing and exploring its commercial potential. Simultaneously, there is growing momentum within the industry to develop high-protein offerings such as Greek-style yogurts, fortified paneer, protein-enriched milk, and ready-to-drink beverages that cater to both health-conscious individuals and the wider population.

The rise of functional and protein-enhanced dairy products aligns well with global health and nutrition trends, as well as with India's unique challenge of managing a dual burden of malnutrition – persistent undernutrition in rural areas and a growing prevalence of non-communicable diseases in urban populations. Protein-rich dairy products offer a culturally compatible, nutritionally dense, and relatively affordable solution. Nevertheless, issues related to affordability, taste preferences, and last-mile accessibility remain, and stakeholders across the value chain are actively working to overcome these barriers through product innovation, improved delivery systems, and consumer education – ensuring that functionality does not come at the expense of palatability or inclusiveness.

This evolving landscape presents enormous policy and advocacy opportunities. Functional dairy products can support athletes, working professionals, children, and elderly populations – contributing to national nutrition goals. At the Indian Dairy Association, we are committed to fostering collaboration among cooperatives, private enterprises, academic institutions, and government agencies to scale this transformation responsibly and inclusively.

While this protein-led transformation is encouraging, we must also remain attentive to broader sectoral dynamics. One of the most notable developments in recent months has been the expansion of the organised dairy sector. Investments in procurement networks, digitization, and cold chain infrastructure are enabling better access for farmers and offering consumers greater choices. Notably, input costs for feed and fodder – accounting for nearly 70% of dairy production costs – have declined by 15-20% over the past year, providing some relief to farmers.

However, this gain has not fully translated into better farm-gate prices. Despite increased procurement and improved productivity, milk prices at the farm level remain stagnant, pointing to deeper structural imbalances in the pricing framework. The cyclical nature of the dairy economy – with periods of surplus triggering price crashes followed by production dips – continues to affect farmer incomes and undermine long-term sectoral stability. It is imperative that we develop more predictable and fair pricing mechanisms, encourage value addition, and create buffer mechanisms to absorb economic shocks and stabilize income for smallholder producers.

Looking forward, the value-added segment offers immense growth potential. Products like cheese, paneer, yogurt, flavored milk, and protein-enriched beverages are gaining traction in domestic markets and hold promise in exports as well. But for these to become engines of profitability, trade policy must be prudent and protective of farmer interests.

In this context, recent reports have raised concerns about proposed bilateral trade negotiations with the United States, particularly regarding the opening of India's dairy sector to imports. According to a State Bank of India (SBI) report, such a move could lead to a 15% drop in milk prices, causing a potential annual income loss of Rs.1.03 lakh crore for Indian dairy farmers. This would translate into a supply-demand imbalance – increasing demand by 14 million tonnes while reducing domestic supply by 11 million tonnes, thereby necessitating imports to fill a 25 million tonne gap.

In addition to the economic impact, there are also public health and ethical concerns. The US dairy industry's use of genetically modified feed and growth hormones – practices banned in India – raises serious regulatory and safety challenges. These concerns strengthen India's longstanding stance that dairy must remain a sensitive sector in any trade agreement. Protecting the livelihoods of over 8 crore people dependent on dairying must remain non-negotiable. The Indian Dairy Association strongly advocates for robust safeguards in trade talks to shield our dairy economy from harmful external disruptions.

Another key area of focus for the future is public trust in dairy. In recent years, misinformation – often driven by global anti-dairy narratives – has created confusion among consumers. However, scientific evidence from both Indian and global studies reaffirms the nutritional and health benefits of moderate dairy consumption. Fermented dairy, in particular, has shown positive effects on metabolic health, immunity, and bone strength. Institutions across the world, including health bodies in Europe and the US, recommend daily dairy consumption as part of a balanced diet. It is critical that we communicate these facts clearly and consistently, using both digital and traditional platforms to counter misinformation and reinforce consumer confidence.

Meanwhile, the sector is also undergoing a technological and environmental transformation. Artificial intelligence, automation, and data analytics are being deployed to enhance productivity, animal health monitoring, and quality assurance. On the sustainability front, initiatives such as converting dairy waste into biofuels, and climateresilient fodder and water management practices are gaining momentum. These innovations are helping reduce the environmental footprint of dairying and creating new revenue streams for farmers.

In summary, the way forward for the Indian dairy sector lies in balancing growth with equity, innovation with affordability, and openness with prudence. The challenges are real, but so are the opportunities. As we approach the 52nd Dairy Industry Conference, I urge all stakeholders to engage with this evolving narrative. Let us demonstrate how Indian dairy is transitioning from a commodity-based industry to a nutrition-led, innovationdriven ecosystem – one that remains rooted in rural livelihoods while embracing global best practices.

In summary, the way forward for the Indian dairy sector lies in balancing growth with equity, innovation with affordability, and openness with prudence. The challenges are real, but so are the opportunities. As we approach the 52nd Dairy Industry Conference, I urge all stakeholders to engage with this evolving narrative. Let us demonstrate how Indian dairy is transitioning from a commodity-based industry to a nutrition-led, innovationdriven ecosystem – one that remains rooted in rural livelihoods while embracing global best practices.