India is the world'slargest producer of milk, and is the leading exporter of skimmed milk powder,yet it exports very few other milk product. It is the world’s largest consumerof dairy products, consuming almost 100% of its own milk production. The ever increasingrise in domestic demand for dairy products and a large demand-supply gap couldlead to India being a net importer of dairy products in the future. Milk hasbeen an integral part of Indian food for centuries.
Demand for milk and milkproteins in developing countries is growing with rising incomes, populationgrowth, urbanization and changes in diets. The growing demand for milk and milkproteins offers a good opportunity for producers (and other actors in the dairychain) in high-potential, peri-urban areas to enhance their livelihoods throughincreased production.