Opportunities in

DAIRYDAIRYSector in IndiaSector in India

Confederation of Indian Industry

Ministry of Food Processing Industries Government of India

Advantage India

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One of the fastest growing economies in the world

Largest producer of several agri commodities

Second largest consumer market

Significant investments in world class ports, logistics & supply chain infrastructure

Proactive Government policies

Investor friendly incentives

Highly skilled manpower pool

Why India for Dairy Processing?

�With production of around 163.7 million MT (2016-17), India is the largest

producer of milk globally.

India’s milk production is expected to reach 180 million MT by 2020, from

current 163.7 million MT, while the demand is projected (by NDDB) to reach 200

million MT.

The Indian dairy market is amongst the largest and fastest growing markets in

the world.

India has managed to attain top position in milk production globally owing to

huge bovine population. However, the full potential of Indian milch herd still

remains unattained.

Per capita availability of milk in India has reached 352 grams per day.

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incomes and increasing health consciousness are the key

growth drivers for milk and high value milk products in

India.

�To tap the surging demand, most dairy players have

entered the processed dairy segment with introduction of

value added products like ghee, flavored yogurt, butter

(with variants), flavored milk, cheese etc.

Changing lifestyle patterns, increasing disposable

Source: Department of Animal Husbandry, Dairying and Fisheries

27.5

19.4

13.512.8 12.2

UttarPradesh

Rajasthan Madhya

Pradesh

Gujarat Andhra

Pradesh

Milk Production (Mn MT)

Major States

Uttar Pradesh is the largest milk producing state in India contributing around 17% to

the total milk production, followed by Rajasthan, Madhya Pradesh, Gujarat and

Andhra Pradesh contributing 12%, 8%, 8% and 7% respectively.

Top 5 Milk Producing States in India

Goa

Assam

Mizoram

Nagaland

Tamil NaduPuducherry

Jharkhand

Delhi

Andhra Pradesh

Telangana

West

Bengal

Arunachal Pradesh

Meghalaya

Manipur

Islands

Madhya Pradesh

Maharashtra

Bihar

Chhattisgarh

Uttarakhand

Odisha

Karnataka

Himachal Pradesh

Punjab

Jammu and Kashmir

Gujarat

Lakshadweep

Uttar PradeshRajasthan

Tripura

Haryana

Dadra and Nagar Haveli

DamanDiu

Kerala

Chandigarh

Andaman & Nicobar Islands

Sikkim

Species-wise Milk Production

35% of the milk produced in India is through indigenous buffalo breeds, followed by

cross bred cattle, non-descript buffalo indigenous cattle and non-descript cattle. A

small amount of milk (about 4.4% ) is produced by exotic cattle breeds and goat.

57.8

41.8

22.518.4

15.4

5.61.7

Indigenousbuffalo

Cross bredcattle

Non-DescriptBuffalo

Indigenouscattle

Non-descriptcattle

Goat Exotic cattle

Production (Mn MT)

State-wise Processing Capacity

Source: Basic Animal Husbandry, Dairying and Fisheries Statistics, 2013

Private Cooperative

2.5 7.9 13.2 4.0 1.8 2.2 2.4 1.0 4.3 -0.5 3.5

22.6 15.6

0.9

5.3 6.5 5.7 3.4 4.0 0.5 3.5 2.4

2.8

-

5.0

10.0

15.0

20.0

25.0

30.0

in '0

00 li

tres

per

day

Policy Support and Key Fiscal Incentives

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100% FDI in trading, including through e-commerce, for food products produced and/or manufactured in India.

100% FDI permitted through automatic route in food processing sector.

Food processing units can avail preferential rates under Priority Sector Lending.

Special fund of INR 2,000 crore (USD 300 million) with NABARD for designated food parks and processing units.

Food Safety Standards harmonized with international standards.

Indicative Opportunity in Dairy Sector

Dairy Processing PlayersTechnology & Equipment Suppliers

�New product development in value

added dairy products viz. cheese,

smoothies, flavored milk, custard,

yogurt and other ethnic Indian

products

�New technology in value added dairy

products’ processing

Cold chain

Innovation in packaging solution

New product development for cattle

feed

New veterinary care technology &

cattle diagnostics services

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�India exported dairy products of around USD 0.2 Bn in the year 2016-17. These include

products like skimmed milk powder, casein milk, cream, etc.

The major destinations include UAE, Pakistan, Bangladesh, Bhutan and Nepal.�

Exports

Schemes of Ministry of Food Processing Industries

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GST implementation to harmonize the tax regime-seamless operations across states.

100 % Income Tax Deductions on:

o Capital expenditure for cold chain / warehouse

o Profit for new food processing, preservation and packaging units

Basic Custom Duty reduced on Refrigerated Containers from 10% to 5%

Concessional Customs Duty on imported equipment

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Scheme for Mega Food Park (MFP)

Government of India has approved setting up of 42 MFPs in the country, out of which 41 have been sanctioned by MoFPI. Of the 41 MFPs, 9 have already commenced operations. The parks have more than 1,200 developed plots (of approximately 1 acre each) with basic infrastructure enabled, that entrepreneurs can lease for the setting up of food processing and ancillary units.

Scheme for Integrated Cold Chain and Value Addition Infrastructure

Scheme for Food Safety and Quality Assurance Infrastructure

Scheme for Infrastructure for Agro-processing Clusters

Scheme for Creation of Backward and Forward Linkages

Scheme for Creation/Expansion of Food Processing and Preservation Capacities

Scheme for Human Resources and Institutions

Ministry of Food Processing Industries, Govt. of IndiaTel: +91-11-26492216/ 26492174/ 26493227/ 26490933 Email: miiweekfpi@gov.in | Web: www.mofpi.nic.in

YES BANK Ltd.Tel: +91-11-46029071Email: fasar@yesbank.inWeb: www.yesbank.in

Confederation of Indian Industry (CII)Tel: +91-11-46344614Email: miiw.fpi@cii.inWeb: www.cii.in

Contact

Confederation of Indian Industry

Source: Ministry of Food Processing Industries (MoFPI), National Horticulture Board, Agricultural and Processed Food Products Export Development Authority (APEDA) , Central Institute of Post-Harvest Engineering and Technology (CIPHET) , Annual Survey of Industries and other relevant websites