Milk and milk products account for 9.2 and 12.4 percent of protein intake in rural and urban areas, respectively, which is higher than the protein intake through non-vegetarian animal products.
The increased production of milk has improved the per capita milk availability to 250 grams per day. The demand of milk and milk products in India is projected to increase to more than 142.9 million tons in the near future and further to 191.3 million tons by 2020.
Rising consumption coupled with better margins in the value added dairy products (VADPs) are driving the dairy players to get into the growth and higher profitable trajectory. Change in demographics and rapid urbanization have resulted into manifold surge in the demand for VADPs.
The performance of the Indian dairy sector has been quite impressive. Milk production in India has been increased from 17 mln.tones in 1950/51 to over 109 mln.tones by 2008/09. During the past one and half decades (1990-2006), milk production has grown at a rate of nearly 4% per year (for comparison the world growth rate for the same period is only 1.5%). The export of dairy products has been increased from 13.98 mln.Rs. in 1990/91 to 6766.82 mln.Rs. in 2005/06, while import has been increased from 40.52 mln.Rs. to 345.66 mln.Rs. during the same period of time. Even more obvious is that if the net trade balance of the dairy products has changed from negative to a positive the country became the world main exporter of dairy products.