Care ratings estimates milk production in India to reach 195 Mill MT in financial year 2020 with an increase over last year by 3.6%.It also estimates milk production to increase at about 4.8% CAGR to reach to a level of 226 Million MT by 2023. The milk consumption was down by 25-30% due to closure of hotels , restaurants , tea shops , sweet shops etc during the lockdown but most of this was compensated by the increase in consumption of milk and milk products at household level. Procurement of SMP and raw milk at lower rates and selling market milk and milk products at high prices would add up to the margin and profitability of organized players. Future outlook of the sector is quiet positive with increase in population, per capita consumption, expenditure of packaged foods, brand awareness, urbanization, nuclear families and government support. The market will also witness shift of consumer from unorganized loose dairy products to the packaged dairy products from formal sector.

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