India’s Dairy Leadership
Thirty years after NDDB’s “Doodh Hain Wonderful” campaign made milk aspirational, India has emerged as the world leader in milk production. By 2023-24, per capita milk availability reached 471 grams per day, well above the global average of 394 grams. Milk output rose 63.6%, from 146.3 million tonnes in 2014-15 to 239.3 million tonnes in 2023-24.
Tamil Nadu’s Position
Tamil Nadu ranks 11th in production but 4th in cooperative procurement. Its annual milk output climbed from 8.75 million tonnes in 2020 to 10.8 million tonnes in 2024. IMARC estimates the value of the state’s dairy market at ₹1.38 lakh crore in 2024, projected to grow to ₹4.23 lakh crore by 2033, at a CAGR of 12.61%.
Private Players on the Rise
Private dairies are intensifying investments. Hatsun Agro Product Ltd, India’s largest private dairy, processes over 40 lakh litres daily and runs 4,000 outlets. With brands like Arokya, Arun and Ibaco, Hatsun posted ₹8,699 crore in revenue last year and aims to double exports from ₹13 crore to ₹26 crore. It also acquired Odisha’s Milk Mantra Dairy for ₹233 crore in 2024.
Milky Mist Dairy Food Pvt Ltd has expanded beyond cheese and paneer into frozen foods, ready-to-eat products, and chocolates. With revenues of ₹2,349 crore in 2024-25 and 108 branded parlours, it has filed for IPO. It’s the Erode paneer plant, the largest in India, which produces 150 tonnes daily.
Akshayakalpa Organic, from Karnataka, is building farm clusters with sustainable models. Its Chengalpet cluster demonstrates that farmers can earn up to ₹1 lakh monthly through organic practices, clean feed, and higher productivity.
Competitive Landscape
Tamil Nadu is witnessing heightened competition with Amul’s expansion through Andhra Pradesh’s Chittoor, Nandini’s cattle feed push, and Aavin’s farmer mobilisation. Experts note that while Uttar Pradesh leads in raw production, only 10% of its market is organised. In contrast, Tamil Nadu’s organised market share exceeds 35%, and farmers there receive the highest procurement prices in India.
Challenges Ahead
Experts, including R.S. Sodhi of the Indian Dairy Association, highlight the need for infrastructure support, better feed-to-milk conversion, and farmer education in modern practices. Scaling sustainable models like Akshayakalpa’s clusters could position Tamil Nadu as a benchmark in both farmer prosperity and consumer trust.
