However, India’s infl uence on the global dairy market is minimal because it only trades marginal amounts of milk and dairy products. Additionally, production in India was relatively unaff ected by the pandemic and excess milk produced during the crisis was processed into milk powder. The Indian dairy industry is projected to achieve a market size of INR 31,185.7 billion by 2028, showcasing a growth rate (CAGR) of 13.2% from 2023 to 2028. India’s five largest – milk producing states Uttar Pradesh 15 % Andhra Pradesh 7% Rajasthan 15 % Madhya Pradesh 9 % (Source: https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Dairy%20and%20Products%20Annual_New%20Delhi_India_IN2022-0091.pdf ) Gujarat 9% A successful immunisation programme helped to reduce the impact of the Lumpy skin disease in cattle, which had an adverse eff ect on milk production in India in FY23. The dairy market requires signifi cant support in the form of investments for infrastructure development for dairy processing. To create adequate infrastructure for chilling, logistics, cattle feed, and others, signifi cant steps must be taken. Considering the scope for delivering value-added dairy products, organic/farm fresh milk and increasing exports, various government initiatives have been implemented to attract investment to the sector. Moreover, the dairy sector has been a major contributor to the growth of India’s rural economy. To boost sales, India’s dairy product sector continues to focus on the semi-urban and rural regions. Government initiatives The National Programme for Dairy Development (NPDD) has approved 4 new projects in 7 states, between January 2022 and November 2022, with a total outlay of ` 355.25 crore (central share ` 244.14 crore). With the installation of 638 bulk milk coolers (each with a capacity of 1491.00 thousand litres), 2990 automatic milk collection units, and 1419 electronic milk adulteration testing devices, these projects seek to strengthen the infrastructure for milk chilling, collection, and testing at the village level. The Livestock Health and Disease Control (LHDC) and National Animal Disease Control Programme (NACP) are also a part of the livestock health and disease control scheme and are covered by the central budget. In the current fi scal year, ` 159 crore have been distributed to the states and Union Territories, under the LH&DCP’s various programmes. On May 2, 2022, in Copenhagen, Denmark, the Ministries of Fisheries, Animal Husbandry and Dairy of the Government of India and the Ministry of Food, Agriculture and Fisheries of the Kingdom of Denmark signed a Joint Declaration of Intent to collaborate in the fi eld of animal husbandry and dairy.4 The Government’s landmark decision to set a ` 20 lakh crore agricultural credit target, specifi cally focusing on Animal Husbandry, Dairy and Fisheries, is highly commendable. The budgetary allocation for Animal Husbandry and Dairying has increased by approximately 40% to ` 4327.8 crore, refl ecting the sector’s importance in the national economy.5 Opportunities Increased adoption of advanced technology Large private companies and entrepreneurs in the dairy industry continue to adopt new-age technologies to address evolving business requirements and scale up business operations. Rising entrepreneurship The growing interest in the dairy market has led to the development of advanced infrastructure for the dairy sector. Entrepreneurs have also established modern dairy farms and infrastructure for the production of safe and hygienic milk. Demand for value-added products Value-added dairy products are in great demand across markets. Besides, rising consumption of ice creams/frozen dessert, milkshakes, fl avoured, yoghurt and other products is also expected to drive market growth. Greater income opportunities for farmers The spending on dairy products continues to increase due to growing awareness about their health benefi ts and the introduction of innovative products to the market. It has allowed small-scale dairy producers to increase their income by selling milk to larger farms that have greater access to customers in regional as well as urban markets. Heritage Foods Limited | 31st Annual report 2022-23 136
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