The White Revolution or Operation Flood, driven by Dr. Verghese Kurien, marked a monumental shift in India’s dairy industry, transitioning it from a low-output system to becoming the world’s largest milk producer. This revolution utilized a low input, low output model, which effectively leveraged India’s vast bovine population to increase overall milk production.
But despite its initial success, India’s dairy sector needs to undergo significant transition to address two persistent challenges – productivity and global competitiveness. For instance, although India has ten times the number of dairy-producing bovines compared to the US, it only produces about 50% more milk. A special emphasis is needed on the adoption of advanced techologies to match international best practices and enhance India’s competitiveness in the global dairy market.
TPCI’s Centre for Advanced Trade Research has undertaken a study titled ‘White revolution 4.0: Implementing high-output systems for enhanced dairy productivity’, which examines the benefits that can accrue from the integration of world-class technologies into each segment of India’s supply chain. The study provides a comprehensive roadmap to modernize India’s dairy sector, addressing current inefficiencies and positioning it for future growth.
The cornerstone of this successful initiative was the cooperative model, which empowered millions of dairy farmers, giving them ownership of the cooperative and ability to earn a fair remuneration for their milk. However, this approach is reaching its limits, and now presents significant opportunity to advance further through the adoption of high output strategies and state-of-the-art technologies.
India’s dairy sector, despite its initial success, needs to undergo significant transition to address two persistent challenges – productivity and global competitiveness. Although India has ten times the number of dairy-producing bovines compared to the United States, it only produces about 50% more milk. The average milk yield per cow in India remains significantly lower compared to advanced dairy nations, such as New Zealand, where yields are about three times higher. Of the total production, only 7% of global milk is traded internationally due to its perishability and high water content.
Nagarajan Sivaramakrishnan, former MD, Mother Dairy and Co-founder, Made from Plants, “India’s hot and humid climate can indeed pose challenges for dairy farming, especially when it comes to raising pure-bred cows that are more suited to temperate or cooler environments. High-yielding dairy breeds like Holstein Friesians and Jerseys, which are often preferred for their milk production, struggle in India’s tropical climate.”
Tamal Chatterjee, Vice President, Sid’s Farm, comments, “India’s dairy production faces challenges like low productivity per cow, often due to poor nutrition and the use of low-yielding breeds. To address this, we need better feed management and the adoption of high-yielding hybrid breeds.” He feels that the next revolution needs to be in the direction of improving the yield of our native bovine breeds.
To further expand its international reach, Indian dairy needs to address quality issues, including bacterial contamination and adherence to Maximum Residue Limits (MRLs). Temperature control issues also affect the health and productivity of purebred cattle. Additionally, the sector’s predominantly unorganized nature exacerbates inefficiencies and hinders adoption of best practices.
The Government of India has recently introduced ‘White Revolution 2.0′, a major initiative designed to transform the dairy cooperative sector. It aims to enhance the dairy industry by boosting production, promoting better management practices, and increasing farmers’ incomes, ultimately fostering sustainable growth within the ecosystem. However, a special emphasis is needed on the adoption of AI and IoT technologies to match global best practices. Addressing legacy challenges is crucial for improving productivity, ensuring quality, and enhancing India’s competitiveness in the global dairy market.
The top dairy producers in the world are India, the US, Pakistan, China, and Brazil, according to the FAO. With approximately 133 million dairy farms globally, this sector supports over 600 million people including 80 million women, of whom about 37 million are farm heads. These farms are vital to the dairy industry, enhancing local economies and ensuring food security while providing livelihoods for millions.
India tops the list with 231 million tonnes of milk produced in 2022-23. This production has increased nearly fourfold since 1994-95, resulting in more than a doubling of per capita milk availability.
In India, approximately 46% of milk production is either consumed locally or sold to non-producers in rural areas, with the remaining 54% distributed between organized and unorganized market players. Notably, unorganized players dominate the milk market, highlighting a significant area for development and improvement in dairy infrastructure and processes. The leading producer state is UP followed by Rajasthan, Madhya Pradesh and Gujarat.
Yet dairy products remain significant in global trade, with exports valued at US$ 96.5 billion in 2023 and a 5-year CAGR of 3.5%. Despite being the largest milk producer, India is still not a major player in the global market. The top five exporters—Germany, New Zealand, the Netherlands, France, and the US—account for 51% of exports, largely due to advanced technology and a well-organized industry. In comparison, India was ranked 42 with a share of just 0.2% in 2023.
Additionally, the domestic market is also growing at a rapid pace, fueled by a youthful population, increasing disposable incomes, and a surge in health consciousness. The market is projected to skyrocket to US$ 290.8 billion by 2033 according to Custom Market Insights, growing at a CAGR of 8%.
Top 10 exporters of dairy products
Source: ITC Trade Map, values in US$ billion
India must urgently address its dairy industry challenges to leverage the huge untapped potential in this sector. Following the success of the White Revolution, which made the country self-reliant in milk production, it’s time to embrace major technological integration in dairy.
Kuldeep Sharma from Suruchi Consultants, opines, “The real challenge for India’s dairy industry lies with scale. Right now, we’re operating on a low-input, low-output model, which works for the moment. However, as demand increases, scaling up will be essential, and that’s something we must address in the near future.”
TPCI’s Centre for Advanced Trade Research has undertaken a study titled White revolution 4.0: Implementing high-output systems for enhanced dairy productivity, which proposes a transformative roadm examines the benefits that can accrue from the integration of world-class technologies into each segment of India’s supply chain.
Dr Debesh Roy, Chairman, insPIRE International, highlights, “Precision farming technologies are transforming the dairy sector by enabling real-time monitoring and data-driven decisions, leading to improved productivity, efficiency, and animal welfare.” He illustrates the case of Netherlands, a leader in this field. Their industry uses automated milking systems (AMS) widely, which allow cows to be milked voluntarily, reducing labour while increasing milk yield.
Dr. JV Pareikh, Technical Adviser – Food & Dairy at Indian Dairy Association, further elaborates, “A major trend driving the sector is the development of value-added dairy products for both local consumption and export markets. There is a marked increase in adoption of technologies like membrane filtration (ultra, micro, nano and reverse osmosis), for better product quality and also in integration of machine milking systems for greater efficiency and hygiene. Players are also exploring fermentation technology to produce a wider range of dairy products, especially in demand during festive seasons.”
The study will adopt a multifaceted approach, starting with a comprehensive mapping of the dairy supply chain to identify challenges at every stage—ranging from feed production and veterinary care to milking, processing, and distribution. Key areas of analysis will include feed quality, herd management practices, milking technology, and cold chain logistics.
By comparing India’s dairy practices with those of leading dairy-producing countries like the US, Netherlands, and New Zealand, the study identifies advanced methodologies and technologies that could be integrated into the Indian context. This includes precision livestock farming techniques such as automated milking systems, data-driven herd management tools, and advanced genetics for improving breed performance.
The study also focuses on technological advancements in dairy production. This includes evaluating innovative feed formulations to improve nutritional efficiency, adopting advanced monitoring systems for health and productivity, and implementing cutting-edge processing technologies to enhance product quality and safety. Recommendations are based on an assessment of emerging technologies such as blockchain for traceability, AI-driven analytics for optimizing production processes, and new packaging solutions that extend shelf life and reduce waste.
Finally, the study highlights emerging trends in India that are transforming the dairy industry. This includes examining how new entrants are leveraging technology to address supply chain challenges, improve animal welfare, and enhance product quality. Our research also looks at interesting players (both established companies and startups) specializing in areas such as smart dairy farming equipment, automated quality control systems, and sustainable packaging solutions will be explored for their potential impact on the industry.
The study provides a comprehensive roadmap to modernize India’s dairy sector, addressing current inefficiencies and positioning it for future growth, while catering to the country’s specific challenges. This transformation will help enhance productivity, improve product quality, and strengthen India’s competitive edge.
For more details on the report and to access a complimentary copy, please connect with Nisha Parveen, Executive Officer – Research and Publication, TPCI at researchdesk@tpci.in.
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