With rapid increase in domestic demand for milk and milk-based products, the dairy industry in India is likely to reach about Rs 500,000 crore crore by 2015, industry body-Associated Chambers of Commerce and Industry of India (Assocham) said today, according to a BS report. Milk production is likely to reach about 190 million tonne in 2015 from current level of about 123 million tonne, according to a study conducted by Assocham

Owing to conventional dietary habits of Indian households, about 60 percent of milk produced is consumed in the liquid form and the remaining is consumed in the form of butter, clarified butter (desi ghee), cheese, curd, paneer, ice cream, dairy whiteners and traditional sweets. There is enormous scope seen ahead before the dairy industry for value-added products including custards, desserts, puddings, sauces, mousse, stirred yogurt and nectars. Demand for processed and packaged dairy produce in urban centres is going to see a phenomenal growth due to growing population with higher disposable income and greater health conciousness.

Private sector can play a pivotal role in reducing the cost of production by employing advanced techniques to enhance productivity, provide breeding facilities for cattle and improving the health of the dairy animals apart from developing proper dairy production, processing and marketing infrastructure.

Characterised by high growth rate, the domestic dairy industry provides a multi-billion dollar potential for foreign companies especially those in New Zealand and Australia.