November 29, 2011

Amidst rising domestic consumption, India's milk production is expected to increase by 4% to 121.7 million tonnes in 2011, United Nations body Food and Agriculture Organisation (FAO) said.

The country produced about 116 million tonnes of milk in 2010, FAO data said.

Rising domestic demand for milk and dairy products is stimulating growth in the country as India is largely absent from the international market for dairy products, the FAO report said.

The international body on the farm sector in its latest 'Food Outlook' report also estimates global milk production in 2011 to grow by 2% to 728 million tonnes.

"Much of the anticipated expansion is likely to accrue in Asia, where India is expected to witness an output rise of five million tonnes to 121.7 million tonnes," FAO said.

According to a recent study by industry body, Associated Chambers of Commerce and Industry of India (ASSOCHAM), India - the world's largest milk producer - accounts for around 20% of global milk production, with most of it consumed domestically.

The domestic dairy industry is expected to touch INR5 lakh crore (US$96 billion) by 2015, with milk output pegged at 190 million tonnes at the end of the period, the ASSOCHAM study said.