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Climate Change Costs India ₹2,661 Crore Annually in Milk Production Losses


Climate change is increasingly threatening India’s agricultural and dairy sectors, affecting food production, livestock health, supply chains and market stability. A recent report by Climate Trends, a Delhi-based climate research organisation, estimates that heat stress alone costs India approximately ₹2,661 crore annually in lost milk production, highlighting the growing economic impact of rising temperatures on the country’s dairy industry.

According to the report, the estimated annual loss is equivalent to approximately 1.8 million tonnes of milk, representing nearly 2 per cent of India’s total milk production. The findings underline the vulnerability of dairy farming to changing climatic conditions and the urgent need for effective adaptation measures across the livestock and agricultural sectors.

Titled ‘From Risk to Resilience: Climate Change, Ecology and the Future of Indian Agriculture’, the report consolidates existing research on climate-related and ecological challenges affecting India’s food production systems. It also outlines policy recommendations aimed at supporting a transition towards more sustainable and climate-resilient agriculture.

Rising Temperatures Pose Challenges to India’s Dairy Sector

Heat stress is becoming a significant concern for India’s dairy farmers, particularly because high temperatures and humidity can negatively affect livestock health, feed intake, reproductive performance and milk productivity.

Dairy animals exposed to prolonged heat stress may experience reduced feed consumption and increased physiological strain as they attempt to regulate their body temperatures. These conditions can lower milk yields, affect reproductive efficiency and increase vulnerability to diseases, ultimately impacting farm profitability.

The estimated annual loss of ₹2,661 crore demonstrates the financial implications of heat stress beyond individual dairy farms. Reduced milk production can also affect milk collection networks, dairy cooperatives, processing facilities and the wider supply chain.

India, one of the world’s largest milk-producing countries, relies heavily on smallholder dairy farmers for its milk supply. Consequently, climate-related production losses can have significant implications for rural livelihoods, dairy businesses and national food security.

Climate Risks Extend Across Agriculture and Livestock

The Climate Trends report highlights that the challenges facing India’s food production systems extend beyond rising temperatures.

Approximately 40 per cent of India’s livestock population is vulnerable to extreme weather events, while nearly 45 per cent of crop-producing land is located in areas exposed to significant flood risks.

The report also indicates that an increase of 1°C in temperature over the past five decades has reduced national average yields across crops by approximately 8 per cent, demonstrating the broader relationship between climate change and agricultural productivity.

These risks are interconnected with the dairy sector, as livestock production depends on the availability of quality fodder, feed crops, water resources and reliable agricultural supply chains. Floods, droughts and extreme heat can disrupt these essential resources, increasing production costs for dairy farmers.

Strengthening Climate Resilience in Dairy and Agriculture

Dr Palak Balyan, Research Lead at Climate Trends, emphasised that India’s food production losses should be understood as a wider systems challenge rather than solely an agricultural issue.

She highlighted the importance of sustained investments in storage infrastructure, agricultural extension services and market access to ensure that farmers are not left bearing the financial burden of climate-related disruptions.

The report also recommends moving beyond conventional yield-focused agricultural approaches towards practices that improve soil health, conserve water, diversify cropping systems and reduce dependence on chemical inputs.

For the dairy industry, these priorities are particularly relevant to sustainable fodder production, improved feed management and the long-term availability of water and agricultural resources.

Need for Climate-Smart Dairy Farming

Building climate resilience within India’s dairy industry will require coordinated efforts from farmers, cooperatives, dairy processors, research institutions and policymakers.

Practical adaptation measures could include improved cattle housing and ventilation, adequate shade, access to clean drinking water, efficient cooling systems and better feed management during periods of extreme heat. Breeding programmes that consider heat tolerance and improved veterinary support can also contribute to livestock resilience.

Dairy cooperatives and milk processing companies can play an important role by supporting farmers through technical guidance, climate-risk awareness and investments in resilient milk procurement infrastructure.

The findings reinforce the importance of integrating climate adaptation into India’s broader dairy development strategy. As temperatures continue to rise and extreme weather events threaten agricultural productivity, protecting livestock health and maintaining milk production will be essential for safeguarding farmer incomes, strengthening dairy supply chains and ensuring long-term food security.



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