India is with highest livestock populations within the world, it accounts 500th of the buffaloes and 200th of the world‘s cows population, most of that are milch cows and milch buffaloes. India‘s dairy farm industry is taken into account together of the most productive development business in the post-Independence era. India is the largest producer of milk with around 133 Million MT of milk production in 2013. This milk is produced at around 75 million dairy farms with the captive holding of two cows per farm with a mean yield of around one thousand liters per day. Out of this virtually half, the milk is consumed at the production level and balance involves the market for direct sales and process. The quantitative relation of unorganized to the organized sector in milk procurement and trading is 60:40.
The performance of the Indian dairy farm sector throughout the past 3 decades has been very spectacular. Milk production grew at a mean annual rate of 4.57 % throughout the 1970s, 5.68 % throughout the 1980s, and 4.21 % throughout the 1990s. The per-capita accessibility of milk was 128 gms in 1980-81 gradually enhanced to 232 gms in 2004-05. Despite, it’s being the biggest milk producer in the world, India's per capita accessibility of milk remains lower than the recommendations (minimum nutritional requirement of 280 gm per day) of ICMR. Many factors have contributed to the raised milk production within the country. First, milk and milk product have cultural significance within the Indian diet and became a very important supply of protein in the diet. The socioeconomic and demographic changes, rising financial gain levels, urbanization and ever-changing food habits and lifestyles have conjointly strengthened growth in demand for dairy farm product. Further, on the availability side, technological progress within the production and processing sectors, institutional factors, and infrastructure played a crucial role.