From Local Farms to Global Markets: K Rathnam talks about India's Dairy Sector

Dairy farming has been an integral part of India for centuries. The evolution of the dairy industry in India has witnessed significant milestones, from its pre-independence era to the cooperative movement and the advent of technological advancements. This journey of the dairy sector is nothing short of remarkable as India goes from a milk-deficit nation to a world leader.

In the Pre-Independence Era Dairy farming in India was largely traditional and localized. Milk production was primarily for household consumption, with surplus milk sold in local markets. In the 1950s and 1960s, India was a milk-deficit nation heavily reliant on imports, with negative annual production growth for several consecutive years. “Despite possessing the world's largest cattle population, India's annual milk production during that time was less than 21 million tonnes. However Small-scale dairy cooperatives or milk collection centers, began to emerge, laying the foundation for organized dairy operations”, shares K Rathnam.

One of the most pivotal moments in the evolution of India's dairy industry was the establishment of the cooperative movement. The movement gained momentum with the founding of the Kaira District Cooperative Milk Producers' Union (Amul) in 1946. This marked the beginning of the cooperative model, empowering farmers to collectively undertake milk procurement, processing, and marketing.

K Rathnam, an expert in the food and dairy industry and CEO of Milky Mist says “The launch of Operation Flood in the 1970s, truly transformed the dairy sector to make India self-sufficient in milk production. This nationwide program focused on increasing milk productivity, establishing milk cooperatives, and enhancing milk processing and distribution networks. It laid a strong base for the sector and was extremely beneficial.” Operation Flood, coupled with the "White Revolution" led by Dr. Verghese Kurien, catapulted India to become the largest milk-producing country globally.

Today the dairy sector which was once in dire straits has reached a level where it is organised and at par with international standards. The introduction of mechanized milking machines, bulk milk coolers, and modern dairy processing equipment significantly improved milk handling and processing capacities. Quality control measures and cold chain infrastructure were also strengthened, ensuring safer and more hygienic dairy products.

As India's dairy sector evolved, there has been a shift towards value-added products beyond liquid milk. The production of dairy-based products such as butter, ghee, cheese, yogurt, and ice cream witnessed substantial growth. “ India emerged as a major player in dairy exports, capitalizing on its abundant milk resources and technological advancements”, shares K Rathnam Milky Mist CEO.

According to the data by investindia.gov.in, India, the world's top milk producer, accounted for 24% of global milk production in 2021-22. Over the past eight years, milk production in India has increased by 51%, reaching 221.06 million tonnes in 2021-22, a 5.29% rise from the previous year.

The top five milk-producing states are Rajasthan, Uttar Pradesh, Madhya Pradesh, Gujarat, and Andhra Pradesh, contributing 53.11% of the country's total milk production. Additionally, India's dairy product exports have grown by 19.45%, with exports amounting to $471 million in the first three quarters of FY 2022-23 compared to $395 million in the same period of the previous fiscal year.

“It is interesting to note that the dairy sector transformation and success at the international level is truly fueled by the rural sector of India. I believe that this enormous success can be dedicated to our rural workers, men, and women who are the backbone of the dairy sector.” states K Rathnam Milky Mist CEO.

By providing a steady income source and improving the standard of living for dairy farmers, the industry has acted as an engine for rural economic growth. The cooperative model, in particular, has empowered farmers by giving them collective bargaining power and access to essential resources and services.

The future of India's dairy industry holds immense potential. With a growing population and increasing disposable income, there is a rising demand for dairy products. Technology-driven innovations such as artificial insemination, genetic improvement, and smart farming techniques are being adopted to further enhance productivity and efficiency.

The focus on sustainable practices and organic dairy farming presents new opportunities for the industry. As India continues to progress, the dairy sector will play a crucial role in providing livelihood opportunities, meeting the growing demand for dairy products, and contributing to the nation's economic development.

Disclaimer: No Asian Age journalist was involved in creating this content. The group also takes no responsibility for this content.