Dairy Sector

Context: India is the highest milk producer and ranks 1st in the world contributing 24% of global milk production.

Milk Producing States in India	Rajasthan (15.05%), Uttar Pradesh (14.93%), Madhya Pradesh (8.6%), Gujarat (7.56%) and Andhra Pradesh (6.97%). They together contribute 53.11% of total Milk production in the country.
Largest producers in the world	India is the world’s largest milk producer, followed by the United States of America, China, Pakistan and Brazil.
Indian milk exports	Export of dairy products recorded a growth of 19.45 % in FY 2022-23 till now (April-December 2022) compared to April-December 2021 of the last fiscal year. Major Export Destinations: Bangladesh, United Arab Emirates, Bahrain, Malaysia, Saudi Arab and Qatar.
Indian milk imports	Imports of Dairy Produce in India increased to 38.86 USD Million in 2022 from 12.40 USD Million in 2021. Imports come from the United Kingdom and Netherlands.
Domestic production	Milk output in India was 221 million tonne in 2021-22, up 6.25% from 208 million tonne in the previous year.
Livestock Census	According to the Livestock Census (2019), the total Livestock population is 536.76 million in India showing an increase of 4.8% over Livestock Census-2012. The total Livestock population in rural and urban area is 514.11 million and 22.65 million respectively with percentage share of 95.78% for rural and 4.22% for urban area. Total Bovine population (Cattle, Buffalo, Mithun and Yak) was 303.76 million in 2019 which shows an increase of 1.3% over the previous census.
Reasons for milk price inflation in India	Increase in demand, while production remained stagnant. Increase in cost of animal feed, which is mainly produced from cereals. Lumpy skin disease affected milk producing capacity of animals. Increase in taxes imposed on milk and milk products.