Milk Production To Rise To 177mn Tonnes
News: India's milk production is expected to increase to around 177 million tonnes (mn tonnes) by 2019/20, thanks to a compound annual growth rate (CAGR) of more than 4%, according to D S Rawat, national secretary general at the Associated Chambers of Commerce and Industry of India (ASSOCHAM). This will meet forecast demand of 150mn tonnes by 2016/17 as forecast in the Phase-I of the National Dairy Plan. According to a study by ASSOCHAM's Economic Research Bureau (AERB), with increasing income level of the average Indian, the monthly per capita consumption expenditure on milk and milk products have grown significantly by 92% in the rural market and by 72% in urban areas.
BMI View: India is a net exporter of agricultural products, and the government is committed to improving food trade. Dairy represents a sector with huge potential for export growth. India is the largest producer of milk in the world, though it consumes a great deal of this. However, as demand for milk across Asia Pacific continues to rise at a great pace, India sits in an excellent geographical position to take advantage. As such, we believe Indian dairy firms will ramp up production to try to increase exports.