India’s dairy industry is one of the largest in the world, producing over 230 million metric tons of milk annually. However, its role in global dairy trade has historically been small compared to its production scale. According to global import export data providers, India’s share in world dairy exports has remained under 1%, but exports are steadily increasing. Insights from dairy Import-Export Data highlight how Indian dairy is moving from a domestic consumption focus to a more export-driven outlook. For stakeholders who rely on Agriculture dairy sectors trade data, this transformation reflects both challenges and opportunities in India’s future trade strategy.
India’s Dairy Export Performance in 2024–25
In FY 2024–25, India’s dairy exports witnessed impressive growth. According to india import export data, the total value of dairy shipments crossed USD 430–450 million, marking a significant jump from the previous year’s USD 272 million. The volume was estimated at around 70,000–75,000 metric tons, indicating growing international demand for Indian dairy products.
This surge has been driven by rising global preference for ghee, butter, and skimmed milk powder, alongside policy support from the Indian government to promote agricultural exports. With growing recognition of India’s quality dairy supply, more countries are opening their markets to Indian exporters.
Top Dairy Products Exported from India
As per the latest dairy Import-Export Data, the following are India’s major dairy export items:
- Ghee and Butter – Contributing nearly 60% of total exports, these remain India’s strongest dairy products in global markets.
- Skimmed Milk Powder (SMP) – Around 25–27% of exports; highly demanded in the Middle East and Asia.
- Cheese (Processed & Natural) – Around 10–12% share, popular in South Asia and Gulf countries.
- Whey & Casein Products – Used in food processing, pharmaceutical, and nutrition sectors.
- Other Value-Added Products – Including paneer, yogurt, and lactose derivatives, gradually entering niche markets.
These figures confirm the potential of value-added dairy products as a future growth driver, especially when supported by reliable import export data insights.
HS Codes for Dairy Exports
Understanding HS (Harmonized System) codes is critical for exporters and buyers. Common dairy HS codes include:
- HS 0401 – Milk and cream, not concentrated
- HS 0402 – Milk powder and cream powder
- HS 0405 – Butter, ghee, and dairy fats
- HS 0406 – Cheese and curd
- HS 0403 – Yogurt and cultured milk products
- HS 3501 – Casein and derivatives
These HS codes are central in india import export data and are frequently tracked by customs and import export trade data providers for monitoring international flows.
Top 5 Export Destinations for Indian Dairy
According to Agriculture dairy sectors trade data, India’s dairy products are primarily shipped to the following destinations:
- United Arab Emirates (UAE) – Strong demand for ghee and SMP.
- Bangladesh – Imports skimmed milk powder and butter.
- Bhutan – Buys large quantities of butter, ghee, and milk products.
- Saudi Arabia – A major buyer of butter oil and processed cheese.
- United States – A growing market for specialty dairy items and ghee in ethnic communities.
Top 5 Buyers and Suppliers
Top Buyers of Indian Dairy Products:
- Lulu Group (UAE)
- Almarai (Saudi Arabia)
- Bengal Dairy Importers (Bangladesh)
- Whole Foods Market (U.S.) – for niche products like organic ghee
- Gulf-based wholesale dairy distributors
Top Suppliers/Export Companies in India:
- Amul (GCMMF) – The largest dairy cooperative and leading exporter of ghee and SMP.
- Hatsun Agro Product Ltd. – Exporting milk powders and cheese.
- Milky Mist Dairy – Known for value-added products like cheese and yogurt.
- Mother Dairy – Expanding global reach through SMP and butter.
- Private Export Houses – Registered under APEDA for agricultural and dairy trade.
These companies play a vital role in strengthening India’s position in the global dairy value chain.
Import of Dairy into India
While India is a major producer, it imports select dairy items such as specialty cheeses, whey protein, and lactose derivatives. Top supplier countries include:
- New Zealand – Milk powders and whey.
- European Union – Cheese and whey derivatives.
- United States – Whey protein for sports nutrition.
- Australia – SMP and butter.
- France/Denmark – Specialty cheese imports.
Strict regulations from the Food Safety and Standards Authority of India (FSSAI) and Department of Animal Husbandry ensure that imported dairy meets health and quality standards.
Challenges in Indian Dairy Export
Despite progress, India faces several hurdles in global dairy trade:
- Trade Barriers – Many importing countries impose high tariffs or strict quotas.
- Stringent Quality Standards – Sanitary and phytosanitary regulations can limit market access.
- Cold Chain Limitations – Lack of advanced logistics for perishable dairy items.
- Price Competitiveness – New Zealand and EU producers often dominate with subsidies.
- Domestic Demand Pressure – High internal consumption leaves limited surplus for exports.
Opportunities Ahead
On the brighter side, import export data shows huge untapped potential:
- Ghee Exports – Rising global interest in Ayurveda and Indian cuisine creates demand.
- Niche Cheese & Yogurt – Indian companies can explore diaspora and halal markets.
- Whey Protein – Growing fitness trends boost opportunities for processed dairy protein exports.
- FTA Negotiations – Bilateral trade deals may reduce tariffs for Indian dairy.
- Data-Driven Insights – With tools from a global import export data provider, exporters can identify emerging buyers and expand into Africa, ASEAN, and Latin America.
Latest News in Dairy Trade
- India’s dairy exports in FY 2024–25 grew by more than 50% year-on-year, driven by ghee and butter shipments.
- The government is supporting farmers and cooperatives with export incentives and quality testing infrastructure.
- New FSSAI rules (effective 2024) require stricter certification for dairy imports, ensuring consumer safety.
- Private players like Milky Mist and Hatsun are scaling their international presence, challenging cooperatives like Amul in export markets.
- Rising interest in ethnic dairy products such as paneer and probiotic yogurts is opening new opportunities in global markets.
Conclusion
The Indian dairy sector is at a turning point. With its massive production base and growing trade momentum, India can evolve from being a domestic dairy giant to a recognized global exporter. By leveraging import export trade data providers and insights from Agriculture dairy sectors trade data, businesses can align strategies with international demand. The next decade will likely see India expand its share in the global dairy market, provided it addresses challenges of quality, logistics, and trade negotiations.
1. What is the value of India’s dairy exports in 2024–25?
India’s dairy exports in FY 2024–25 crossed USD 430–450 million, showing a significant rise compared to previous years, driven mainly by ghee, butter, and skimmed milk powder.
2. Which are the top dairy products exported from India?
The major dairy export items are ghee, butter, skimmed milk powder, cheese, and whey products. Ghee and butter account for nearly 60% of total exports.
3. Who are the top buyers of Indian dairy products?
Top destinations include UAE, Bangladesh, Bhutan, Saudi Arabia, and the United States. Major buyers are retail chains, wholesalers, and food distributors catering to large populations and diaspora markets.
4. What HS codes are used for Indian dairy exports?
Common HS codes include HS 0401 (milk and cream), HS 0402 (milk powders), HS 0405 (butter, ghee, fats), and HS 0406 (cheese and curd). These codes are used in customs and trade records.
5. What challenges does India face in dairy exports?
Key challenges are strict global quality standards, tariff and non-tariff barriers, limited cold chain infrastructure, and strong competition from New Zealand and EU countries.
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