Industry Profile:

India is today the world's largest milk producer. By 2011, Dairy India projects the value of the industry to more than double to Rs 520,780 crore, which includes Rs 159,600 crore from liquid milk, Rs 42,680 crore from ghee, Rs 50,500 crore from khoa/chhana/paneer, Rs 9,100 crore from milk powder, Rs 2,250 crore from table butter, Rs 6,150 crore from cheese/edible casein and Rs 25,050 crore from other products. Interestingly, out of the anticipated milk output of 120 mt, the share of liquid milk will rise to 81 per cent or 97.5 mt and only the rest 19 per cent (22.5 mt) would get converted into products. But the organized industry's share of total milk handling will go up to 30 per cent (36 mt), while the small players will see their share dip to 22 per cent (26 mt). At the same time, higher rural incomes will marginally boost the share of milk retained in rural areas to 48 per cent or 58 mt. The other significant feature is that within the 30 per cent overall share of organized dairies, the major 20 per cent (24 mt) will be accounted for by the private sector. The cooperatives and government dairies will handle 10 per cent or 12 mt of milk, which will be lower than that of the organized private sector.

Fresh Milk constituents:

Over 50% of the milk produced in India is buffalo milk, and 45% is cow milk. The buffalo milk contribution to total milk produce is expected to be 54% in 2000. Buffalo milk has 3.6% protein, 7.4% fat, 5.5% milk sugar, 0.8% ash and 82.7% water whereas cow milk has 3.5% protein, 3.7% fat, 4.9% milk sugar, 0.7% ash and 87% water. While presently (for the year 2000) the price of Buffalo milk is ruling at $261-313 per MT that of cow is ruling at $170-267 per MT. Fresh pasteurized milk is available in packaged form. However, a large part of milk consumed in India is not pasteurized, and is sold in loose form by vendors. Sterilized milk is scarcely available in India.

Packaged Milk: Packaged milk can be divided according to fat content as follows, Whole (full cream) milk - 6% fat Standardized (toned) milk - 4.5% fat Doubled toned (low fat) milk - 3% fat other category of milk, which has a small market is flavored milk. Milk Production in India:

Production in India Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Production (Million Tonnes) 55.7 58.0 60.6 63.8 66.2 69.1 72.1 75.4 78.3 80.6 84.4 86.2 88.1 Per Capita Availibilty (gms/day) 178 182 187 194 197 202 207 213 217 220 225 230 231

2004-05 200506 2006-07 2007-08 2008-09

92.5 97.1 100.9 104.8 108.5

233 241 246 252 258

Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI