India’s Dairy Sector Stable Despite West Asia Conflict, Says Government

The government on Tuesday said that milk supply uninterrupted across India and stable prices of milk and dairy products have been maintained despite the ongoing West Asia conflict , with no disruption reported in procurement, processing, distribution, or payments to farmers.

At a briefing, Puja Rustagi, Director in the Department of Animal Husbandry and Dairying , said India’s dairy sector continues to operate smoothly under a real-time monitoring system tracking milk availability, fuel supply, and packaging materials across states and milk unions.

India, the world’s largest milk producer, recorded an output of 247.87 million tonnes in 2024–25 , highlighting the scale and resilience of the sector. Officials said the stability in prices is driven primarily by strong domestic production and supply chain efficiency rather than external trade, as India’s dairy exports and imports together account for less than 2 per cent of total production .

She said there are no issues in the supply of fuel, gas, or packaging inputs. A Ministry of Petroleum and Natural Gas order dated April 8, 2026, has ensured 70 per cent LPG allocation for critical industries , including dairy processing units, while a gradual shift towards piped natural gas (PNG) is being encouraged to reduce fuel cost volatility.

Officials added that in the overall structure of milk pricing, farm-level costs such as cattle feed and procurement account for around 55–65 per cent , transportation and processing about 10–15 per cent , energy inputs including LPG and cold chain roughly 8–12 per cent , packaging materials like polypropylene around 5–8 per cent , and distribution and retail margins about 10–15 per cent , all of which have remained broadly stable.

On packaging, the department confirmed steady availability of plastic packaging material supply , including polypropylene and polystyrene, ensuring uninterrupted operations across the dairy value chain.

The department has also strengthened monitoring through a digital portal launched on March 30, 2026, tracking milk, fuel, and packaging supplies in real time, along with regular reviews with state federations and milk unions.