§1How big it is
Milk production rose from 146.3 million tonnes (2014-15) to 239.2 million tonnes (2023-24); India is the world's largest milk producer
PIB backgrounder: World Milk Day 2025 (31 May 2025)Dairy is the single largest agricultural commodity, contributing 5% to the national economy and directly employing more than 8 crore farmers
PIB backgrounder: World Milk Day 2025 (31 May 2025)Total livestock population 536.76 million, incl. 303.76 million bovines (world's largest livestock owner)
PIB backgrounder: World Milk Day 2025 (31 May 2025)
§2Ways to get started
- Bulk milk chilling centre / village collection centre
- Paneer, curd and ghee micro unit
- Small dairy farm (10-50 animals) under NLM / bank loan
- Cattle feed / mineral mixture unit
- Goat or poultry farm under National Livestock Mission
- Milk ATM / doorstep brand in a town
§3Hubs and clusters
- Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra are the top milk-producing states (state ranking reported from Basic Animal Husbandry Statistics; exact shares not confirmed from primary source)
- Gujarat - Anand (Amul cooperative model)
§4Licences and registration
- FSSAI licence (dairy units above notified capacity need Central/State licence; small milk vendors need registration)
- Legal Metrology packer registration for packaged milk products
- Registration with cooperative / milk union if supplying to cooperative
- Export: EIC certification and APEDA RCMC for dairy exports
- Udyam Registration (MSME) - free, online, PAN + Aadhaar based
- GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
- Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
- Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
- IEC (Importer Exporter Code) from DGFT if you import or export
§5Regulators
- FSSAI (milk and milk products)
- Department of Animal Husbandry & Dairying (DAHD)
- State Animal Husbandry departments
- State Pollution Control Board (dairy plants)
§6Government help
- Rashtriya Gokul Mission (breed improvement, AI services)
- National Programme for Dairy Development (NPDD)
- Animal Husbandry Infrastructure Development Fund (AHIDF) - interest subvention for dairy/meat/feed plants
- Dairy Processing & Infrastructure Development Fund (DIDF)
- National Livestock Mission (NLM) - entrepreneurship for poultry, sheep, goat, piggery, fodder
- Livestock Health & Disease Control Programme (LHDCP) incl. generic vet medicine provision (Rs 3,880 crore for 2024-25 and 2025-26)
- Kisan Credit Card for animal husbandry and fisheries
- PMFME (for small dairy products units)
- Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)
§7For exports
- APEDA (dairy products)
- EIC (export certification)
§8Pros and cons
Merits
- World's largest milk producer with steady growth (annual growth 5.7% over 10 years) [PIB World Milk Day 2025]
- Cooperative network gives assured procurement - 18 million dairy farmers are members [PIB World Milk Day 2025]
- Several central infra funds (AHIDF, DIDF, NLM) target private entrepreneurs, not only cooperatives
Demerits
- Price of milk is set largely by cooperatives - private processors compete with Amul-type unions on procurement price
- Perishable product: chilling and cold chain are mandatory capital costs
- Animal health risk (outbreaks like lumpy skin disease) can hit supply
- Daily cash payment to farmers but credit sales to retailers squeeze working capital