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India’s dairy sector is a story of extraordinary growth and empowerment. Over the past decade, it has grown at over 5% compound annual growth rate (CAGR), contributing nearly 5% to the national economy and supplying 25% of the world’s milk. From about 150 million tonnes in 2014-15 to 240 million tonnes in 2023-24, this sector directly employs around 80 million farmers, with women comprising 70% of the workforce. Smallholder farmers (farmers who own two to five animals) produce 62% of the country’s milk supply. Yet, this success story faces a growing challenge—climate change.Rising temperatures, erratic rainfall, and extreme weather events are already impacting dairy productivity. At the same time, according to India’s Fourth Biennial Update Report to the United Nations Framework Convention on Climate Change, agriculture accounts for close to 14% of India’s total greenhouse gas (GHG) emissions, with livestock contributing the most (58%). Enteric fermentation in cattle and buffalo is responsible for 90% of methane emissions from livestock. If India wants to sustain its dairy revolution, climate resilience must become a priority.Pathway to a Climate-Resilient and Sustainable Dairy SectorThe journey towards a climate-resilient and sustainable dairy sector hinges on transformative reforms across critical domains, including feed and fodder management, breeding, manure management, and supply chain. The CII FACE and Environmental Defense Fund (EDF) study “ India’s Dairy Future: Aligning Livelihoods, Growth and Climate Solutions ” explored some of these emerging solutions.One of the foremost challenges—enteric methane emissions—can be addressed by reducing the methane intensity of dairy products through balanced feeding, and feed additives that enhance digestion efficiency and increase productivity. Silage-making can ensure year-round nutrition, especially in fodder-scarce regions. For instance, in Tamil Nadu, farmers have adopted barrel silage to secure continuous fodder availability. Hydroponic fodder production addresses seasonal shortages. All these interventions need better extension services, robust feed quality standards and improved supply chains for widespread adoption. Beyond environmental benefits, these interventions present lucrative opportunities for agripreneurs.Similarly, breeding advancements play a pivotal role in lowering GHG emissions. Breed upgradation and a reduced male cattle population are key levers for sustainable dairy growth. With growing support from both government and private initiatives, farmers are increasingly adopting artificial insemination (AI) and sex-sorted semen technologies to improve productivity and reduce male cattle population.Efficient manure management is central to emission reduction strategies. Practices such as timely drying can cut methane emissions from manure by up to 90%, while composting improves raw manure’s use as a valuable organic fertilizer, reducing reliance on chemical alternatives. Traditional practices like Panchgavya are also being utilized to enhance soil fertility. Biogas production offers additional renewable energy solutions. With support from industry players, biogas plants are being installed on farms, enabling farmers to generate renewable energy and reduce GHG emissions from on-farm energy consumption. Integrating them into rural electrification and clean cooking programs can boost adoption.Farm productivity and resilience can be significantly improved through preventive animal healthcare measures, including vaccination. However, gaps in farmer awareness, inadequate veterinary services and affordability hinder widespread adoption. Addressing these through strengthened veterinary infrastructure and regulatory enforcement can promote sustainable livestock management.Integrated farming system models, that combines different farming components like crop production, livestock, aquaculture, and agroforestry on a single farm, are gaining traction, providing small farmers with better income and nutrition security. However, scaling adoption requires awareness campaigns and targeted efforts. Additionally, precision dairy technologies like automated milking and climate-resilient sheds, which can reduce heat stress, enhance efficiency but remain costly for smaller farms. The adoption of milk vending machines is another step, reducing packaging waste.A crucial but often overlooked factor is emissions tracking. Defining breed- and feed-specific emission factors (EFs) is essential for better estimates of GHG assessments, particularly for indigenous cattle. Studies suggest Indian cattle, due to their unique genetics and dietary patterns, may have 12–14% lower EFs than standard global estimates. Pilot studies across different agro-climatic zones are imperative to establish better regional data and guide policy interventions. By integrating these solutions across the dairy value chain, India can pave the way for a more sustainable, climate-resilient dairy sector—one that not only enhances productivity and farmer incomes but also aligns with global climate goals.Industry-Led Sustainability MeasuresIndia’s dairy industry, spanning cooperatives and private enterprises, has long supported farmers and driven sectoral growth. Today, it is driving sustainability, by creating awareness, organizing training programs, and providing advisory services. Many companies support farmers by offering good quality feed, fodder, and artificial insemination services at subsidized rates. Dairy companies are advancing sustainability through water recycling, renewable energy, and circular packaging. Wastewater recycling systems is enhancing water efficiency, while solar and wind energy improve energy sustainability. A shift to cardboard packaging reduces plastic use, though wider adoption needs stronger policies and greater consumer awareness. Many companies are embracing effluent treatment and recycling processes (Zero Liquid Discharge), ensuring that up to 85% of water is treated and reused within plant operations. Segregating and repurposing packaging waste further supports a circular dairy industry. Moreover, carbon credit programs are still in their early stages in India but have the potential to transform the dairy sector. By assigning a financial value to emission reductions, companies can embed these costs within their operations. This can not only help clearly outline a business case for climate action but also help future-proof the supply chain making it more resilient.A Vision for the FutureThe way forward lies in collaboration. Cooperatives, government agencies, private players, startups, and farmers must work together to scale up climate resilient solutions. Strategic partnerships can help farmers access the knowledge, capital, and technology they need to future-proof their livelihoods. From the White Revolution to becoming the world’s largest milk producer, India’s dairy sector has always adapted to change.Today, as climate change threatens serious implications for its future, the dairy sector has an opportunity to lead again—this time, in sustainable dairying. By embracing innovation, supporting small farmers, and prioritizing environmental responsibility, India can adopt sustainable dairy farming at scale. The Union Cabinet has reinforced its commitment to the dairy sector by approving the Revised National Program for Dairy Development (NPDD) and the Revised Rashtriya Gokul Mission (RGM), each with an additional budget of INR 1,000 crore, to enhance dairy infrastructure and boost livestock productivity.The next phase of India’s dairy revolution must not just be about quantity—it must be about sustainability. Authors:Kavery Ganguly, Principal Lead, CII - Jubilant Bhartia Food and Agriculture Centre of Excellence (FACE)Vrashabh Kapate, Senior Manager, Environmental Defense Fund

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National :India’s Dairy Sector: Building a Climate-Resilient Future

India’s dairy sector is a story of extraordinary growth and empowerment. Over the past decade, it has grown at ... ...