Dairy sector needs organised growth, value addition and sustainability: Meenesh Shah

India’s dairy sector must accelerate the shift towards organised procurement, value-added products and sustainable practices to unlock its next phase of growth, said Meenesh Shah, chairman and managing director, National Dairy Development Board (NDDB) at Drinktec Delhi.
Addressing delegates at the opening session, Shah highlighted India’s transformation from a milk-deficient nation to the world’s largest producer, describing it as a model for developing economies such as Sri Lanka and Kenya. “India’s dairy journey offers replicable lessons in building self-sufficiency,” he said.
The address underscored dairy’s central role in India’s economy, supporting nearly eight crore farmer families and acting as a critical buffer against agricultural uncertainties such as droughts and erratic rainfall. It also remains vital for food security, particularly for India’s large lacto-vegetarian population that depends on milk for protein intake.
However, structural challenges persist. Nearly 60% of milk continues to be handled by the unorganised sector, raising concerns around adulteration and quality. The speaker stressed the need to expand organised value chains — across both cooperatives and private players — to improve traceability, consumer trust and farmer incomes.
Value addition emerged as a key growth lever. With the industry committed to returning up to 80% of consumer value to producers, higher-margin products such as cheese, paneer and functional dairy are seen as essential to sustaining farmer remuneration. The segment also presents export opportunities, particularly as India currently accounts for less than 1% of global dairy trade.
Efforts are underway to make India export-ready by addressing animal health challenges, including Foot and Mouth Disease (FMD) and brucellosis, which remain key trade barriers.
Sustainability was another major focus area. Initiatives such as ration balancing have demonstrated methane emission reductions of up to 15%, while manure management is being leveraged for compressed biogas and organic fertilisers. From large-scale plants to decentralised farm-level systems, these interventions aim to reduce the environmental footprint while creating additional income streams.
The address concluded with a call for industry-wide collaboration to scale organised procurement, drive innovation and align with India’s 2047 development vision.