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Prospects of Dairy Industry in India


  • Bindu Hima T.

    () (Department of MBA, Sreenivasa Institute of Technology and Management Studies (SITAMS), Chittoor (Andhra Pradesh), INDIA)

  • Subrahmanyam S.E.V.


The performance of Indian dairy sector during the 1950s and 1960s was not remarkable. However, with the successful implementation of Operation Flood Programme (OFP) during the 1970s, the dairy sector achieved fourfold growth rate by touching the mark compound growth rate. It is interesting to note that during the past three decades, the total milk production increased but per capita milk production declined. India has emerged as the world’s largest milk producing country. Milk production increased by about 4 percent a year and it increased from 22 million tons in 1970-71 to 104.8 million tons in 2007-08, the per capita per day milk availability increased from 107 grams to 245 grams during this period. India’s first automated dairy plant with handling capacity of 1,000,000 lpd has been established at Gandhinagar near Ahmedabad in Western India. Several domestic cooperatives have mushroomed and many of them are now emerging as major players in the global market. OFP for the first time recognized the need of rural milk producers and paid attention towards their thorough development.It plays the key role in bringing about the transformation of dairy development in the country. The OFP established milk producer’s co-operatives in villages and made modern technology available to them. At present India is not able to compete with European Countries and United States in export trade of dairy products because milk in these countries is highly subsidized. It is to be noted that the GATT Negotiations were for removal of these subsidies. If India intends to capture a major chunk of this market, it will have to make concerted efforts to ensure quality of milk and milk products.

Suggested Citation

  • Bindu Hima T. & Subrahmanyam S.E.V., 2012. "Prospects of Dairy Industry in India," Advances In Management, Advances in Management, vol. 5(10), October.
  • Handle: RePEc:mgn:journl:v:5:y:2012:i:10:a:9

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