India Records 80% Surge in Dairy Exports in FY25

Even as dairy imports remain a sticking point in trade negotiations with the United States, India, the world’s largest milk producer, is steadily emerging as a growing player in the global dairy market.

According to India Ratings and Research (Ind-Ra), the country’s dairy exports rose sharply in FY25, registering 77.9% growth in volume and 80.6% in value. India exported 113,350.4 metric tonnes of dairy products worth $492.9 million during the year.

Butter and clarified butter (ghee) drove this surge, with exports jumping 142% to 67,565 tonnes, up from 27,837 tonnes a year earlier. Exports of milk and cream also increased, though at a slower pace. In contrast, milk powder shipments fell to 9,700 tonnes in FY25, a steep drop from 49,654 tonnes in FY22. Fermented milk products also recorded a rise in overseas demand.

India currently contributes 24% to global milk production but only 0.25% to world dairy trade, largely because of high domestic consumption. However, its export footprint is expanding, with key destinations including the UAE, Bangladesh, USA, Saudi Arabia, and Bhutan.

Among the leading Indian exporters are Gujarat Cooperative Milk Marketing Federation (Amul), Mother Dairy, Punjab State Cooperative Milk Producers’ Federation, Bihar State Milk Cooperative Federation, and Britannia.

Looking ahead, Ind-Ra projects India’s milk output to grow 5% annually. From 251 million tonnes in FY25, production is expected to rise to 263 million tonnes in FY26 and 277 million tonnes in FY27, compared to 198 million tonnes in FY20. Per capita milk availability is also projected to increase by 4% annually, reaching 530 grams per day by FY27.

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