India dairy sector eyes AMF-led export growth across Gulf, Bangladesh and Africa

With 247.87 million tonnes of milk output in 2024-25 but exports below 1% of production, India’s dairy industry is being urged to build neutral anhydrous milk fat capacity, bonded processing and direct industrial customer contracts to expand overseas.

— Source publishedSun, 13 Sept, 2026, 09:00 IST·First seen Sun, 13 Sept, 2026, 10:06 IST·Source BL · Consumer & Economy

What happened

India dairy sector · India’s dairy sector can grow exports by producing neutral anhydrous milk fat, protecting its Gulf position and expanding in Bangladesh,

Key facts

  • 247.87 million tonnes of milk produced in 2024-25
  • Nearly 25% of global milk output
  • Exports below 1% of output
  • 5.1 million tonnes of butter and ghee output
  • About $330 million in butter and ghee exports in 2024
  • Africa's dairy deficit was $6.4 billion in 2023
  • Nigeria imports about 60% of its dairy needs

Why this matters

Target partnerships or acquisitions that add AMF processing, bonded logistics and established B2B distribution networks across the Gulf, Bangladesh and Africa.

What to watch

  • New AMF capacity announcements or commissioning by major Indian dairy cooperatives and private processors.
  • Export-contract wins with Gulf industrial food buyers, especially Saudi Arabia, UAE, Oman and Qatar.
  • India's dairy export data showing AMF and butterfat growth faster than skim milk powder growth.
  • Changes in domestic ghee and butter prices relative to international anhydrous milk fat benchmarks.
  • Bangladesh tariff, import licensing or sanitary-policy changes affecting Indian dairy products.
  • African distributor partnerships, halal approvals and country-specific dairy import registrations.
  • Milk procurement growth, monsoon performance and seasonal availability of milk fat.
  • New Zealand and EU butterfat output, export pricing and shipping-cost movements.
  • Build neutral-flavor AMF lines designed for industrial specifications rather than retail ghee formats.
  • Secure bonded processing, export-grade cold-chain and port logistics capacity in western and southern India.
  • Pursue direct supply agreements with Gulf food manufacturers, bakery chains, confectioners and foodservice distributors.
  • Prioritize halal certification, residue testing, traceability and destination-market labeling compliance.
  • Use Bangladesh as a proximity market for shorter-cycle contracts while developing distributor-led African market entry.
  • Hedge exposure to global butterfat prices, freight rates and currency movements.
  • Protect domestic retail availability through export allocation rules and seasonal milk-fat inventory planning.

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