September 24, 2004

India's Dairy Sector Sees Bright Export Outlook

Export prospects for the Rs 14,500 crore Indian dairy industry have brightened with increasing demand for buffalo milk, fast evolving global market for milk-based sweets and recent reduction in dairy subsidies by the European Union. But adhering to international quality norms would be critical.

India's share in global trade of dairy commodities has been negligible so far, although it is the world's largest milk producer and producing almost 14 per cent of the total. But experts believe the country has an excellent opportunity to make its presence felt abroad in the changing scenario.

According to J V Parekh, a technical consultant on dairy and food industry, factors which bode well for Indian exports include low cost of production, total absence of dairy subsidies in India while EU has WTO commitments to reduce them, greater share of buffalo milk in total output as well as a big market for milk-based sweets developing overseas.

Thus Amul (Gujarat Cooperative Milk and Marketing Federation) has set its single largest export target ever, projecting the doubling of exports in 2004-05 from last fiscal, amounting to Rs 90 crore.

Parekh said unlike other milk producing countries, 54 per cent of India's milk comes from buffaloes which are endowed with unique processing qualities.