As milk is one of the most crucial commodities of the industry, it demands better provisions for end-to-end handling. Right from the process of extraction to when the milk reaches a consumer there is an ever growing need for minimum wastage, maximum safety and increased shelf life. To address this critical need, it is expected that the milk storage or chilling infrastructure, milk testing facilities especially at the village level and improved packaging processes be provisioned to strengthen the backbone of the supply chain.

Dairy plays a significant part in numerous aspects of Indian society, including cuisine, religion, culture, and the economy. India has the world’s largest dairy herd with over 300 million bovines, producing over 187 million tonnes of milk. India is first among all countries in both production and consumption of milk. Most of the milk is domestically consumed, though a small fraction is also exported. Indian cuisine, in particular North Indian cuisine, features a number of dairy products like paneer, Ghee while South Indian cuisine uses more yogurts and milk. Milk and dairy products play a part in Hindu religious practice and legend.

Dairy production in the Indian subcontinent has historical roots that go back 8,000 years to the domestication of zebu cattle. Dairy products, especially milk, were consumed on the subcontinent at least from the Vedic period. In the mid- to late 20th century, Operation Flood transformed the Indian dairy industry into the world’s largest. Previously, milk production in India occurred mainly on household farms.

The economic impact of the dairy industry in India is substantial. Most of the milk produced comes from buffalo; cow milk is a close second. A large variety of dairy products are produced in India. Dairy imports into India are negligible and subject to tariffs. The domestic industry is regulated by government agencies such as Ministry of Animal Husbandry, Dairying and Fisheries; National Dairy Development Board; and Food Safety and Standards Authority of India.

According to estimates, about 25% of the total milk produced undergoes commercial processing, of which about 70% is sold as packaged milk while the remaining 30% is used for preparation of dairy products. Packaged milk is typically pasteurised milk, and is usually a mixture of cow milk and buffalo milk since most dairies do not have separate collection systems for them. It is sold in variants on the basis of the fat content: