India’s largest milk producer emerges from the desert, impacting national economy and global trade talks.
Rajasthan, traditionally known for its arid landscapes, has remarkably transformed into India’s largest milk producer since the pandemic, a significant shift in the nation’s dairy landscape. This desert state now accounts for a substantial 16 percent of India’s total milk output, surpassing Uttar Pradesh. This unprecedented rise is poised to benefit Rajasthan more than any other state, particularly in light of India’s firm protectionist stance in ongoing trade negotiations with the United States concerning its vital dairy sector.
Detailed analysis confirms Rajasthan’s ascendancy. Between 2020–21 and 2023–24, the state’s real gross value of output from milk averaged an impressive Rs 91,226.9 crore, outperforming Uttar Pradesh’s Rs 87,447.6 crore, according to a recent Ministry of Statistics report. Before the pandemic, Rajasthan held the second position, contributing 12.8 percent of India’s milk, while Uttar Pradesh led with 16.6 percent, underscoring the rapid and impactful growth within Rajasthan’s dairy economics.
Rajasthan is not alone in driving India’s expanding milk economy. Madhya Pradesh has also demonstrated remarkable growth, recently overtaking Gujarat to claim the title of the fourth-largest milk-producing state. In 2022–23, Madhya Pradesh contributed 7.5 percent of the country’s milk output, slightly ahead of Gujarat’s 7.3 percent, with its share further rising to 7.6 percent in 2023–24. Notably, Rajasthan and Madhya Pradesh are the sole states to significantly increase their share of national milk production between 2011–12 and 2023–24, gaining 4.4 and 2.2 percentage points respectively.
This transformative shift in milk production comes at a crucial time, as India’s overall reliance on milk continues to grow. In 2023–24, the value of milk production, standing at Rs 6.1 lakh crore, constituted a significant 20.5 percent of India’s total agricultural output, up from 17.2 percent in 2011–12. For Rajasthan, this dependence is even more pronounced, with milk contributing a third of the state’s total agricultural output, marking a substantial increase from 22.9 percent a decade earlier. India’s consumption patterns also mirror this trend, with rural household expenditure on milk and milk products rising to 8.4 percent, and urban households to 7.2 percent.
The burgeoning significance of India’s dairy sector has placed it at the forefront of contention in trade negotiations with the U.S. Indian negotiators have consistently sought to exclude agriculture and dairy from the purview of bilateral trade deals. This steadfast stance reflects India’s deep commitment to safeguarding its domestic dairy farmers and ensuring national food security, highlighting the strategic importance of this sector in both economic and political arenas within the international dairy community.
Source: Moneycontrol: From desert to dairy giant: Rajasthan’s rise in milk production
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