As a centuries-old tradition, livestock rearing has been an integral part of the Indian agricultural system. India possesses the world’s largest livestock of 536.76 million (20th Livestock Census 2021, Base Year: 2019-20), which is 13 percent of the world’s total livestock population. Between 2014-15 and 2022-23, the livestock sector experienced robust growth with a Compound Annual Growth Rate (CAGR) of 7.38 percent at constant prices. Its contribution to the Gross Value Added (GVA) in agriculture and allied sectors increased from 24.32 percent in 2014-15 to 30.38 percent in 2022-23. Additionally, it represented 5.5 percent of the total GVA in 2022-23 at current prices, enhancing the per capita availability of milk, eggs, and meat significantly.
Milk and milk products, which constituted 66.9 percent of the livestock subsector’s output in 2021-22, were valued at ₹5,617 billion at constant prices (Basic Animal Husbandry Statistics 2023). India leads globally in milk production, contributing 24.76 percent of the world’s total. Milk output grew at a CAGR of 5.62 percent over the past decade, rising from 146.31 million tonnes (MT) in 2014-15 to 239.30 MT in 2023-24. The per capita daily milk availability in India stands at 471 grams in 2023-24, surpassing the global average of 329 grams (estimated in 2023, Food Outlook November 2024). Beyond providing livelihoods to countless rural households, dairying also supports their nutritional needs, underscoring its vital role in achieving India’s food and nutritional security goals. But it has contributed to 278.87 million tonnes of carbon dioxide equivalent (MT CO2 eq) of greenhouse gas emissions (GHG) from 451 million livestock (of which 303.3 million bovines) reared for milk production and other purposes (Table 1).
Table 1: GHG Emissions (from enteric fermentation and manure management) of dairy farming in India
Source: Author’s Calculation based on Basic Animal Husbandry Statistics (2023), 20th Livestock Census using IPCC Tier 2 Methodology
The country is actively working to achieve net zero emissions by 2070 and to keep temperatures rising beyond 2 °C above pre-industrial levels. Dairying, however, is the major emitter of methane and a significant driver of climate change. The GHG emission from livestock is primarily from Enteric Fermentation, which is the digestive process of ruminants (largely buffaloes and cows in India) that creates methane, which animals release into the atmosphere through belching and exhalation. Methane is 27.2 times more powerful than carbon-dioxide (CO2) in driving the temperature rise. The urine and manure management from livestock also contribute to small portions of methane and nitrous oxide. As per India’s National GHG Inventory for 2020, methane from enteric fermentation (which is predominantly coming from buffaloes and cows) contributes 54.8 % of the country’s agriculture sector GHG emissions and 7.5 % of the country’s total GHG emissions (MoEFCC 2024). An additional 3.2 % comes from manure management; thus, the livestock sector comprises 58 % of the total agricultural emissions of the country. The dairy sector has been growing to meet the milk demand, and our estimates reveal that for every kg of milk production in India, buffalo release 1.04 Kg CO2 eq of GHG into the atmosphere, which is even higher i.e. 2.32 Kg CO2 eq by indigenous cattle mainly due to lower milk yield of cows @ 3.44 kg/day/animal (Table 1). If we compare these emissions for each kWh of electricity production in India, the average CO2 emissions are 0.82 kgCO2/kWh (Central Electricity Authority, Ministry of Power). This clearly reflects that each Kg of milk production in India is more GHG-intensive than each kWh of electricity production. Although energy transition is the focus of the country, the dairy sector also needs to be transitioned into a sustainable way of producing milk. This can only be done if the country stays economically healthy, generates sufficient income for dairy farmers and meets the needs of society and the sector itself (animal welfare, animal health and biodiversity).
What can Indian dairy learn from the Netherlands?
Animal farming is an important part of Dutch agriculture. The Netherlands ranks as the fifth-largest global exporter of dairy products, contributing over 9 % to Europe’s annual milk production with approximately 1.8 million dairy cows. Beyond dairy, it is a key producer of meat, housing sizable populations of pigs (8.4% of Europe’s total headcount), non-dairy cattle (2%), and poultry (7.6%). However, livestock production accounts for 71 % of Dutch agricultural emissions (IMF Working Paper 2021). Aligned with the 2019 Climate Agreement, which sets a target for a 55 % reduction in greenhouse gas (GHG) emissions nationwide and a 95 percent reduction by 2050, the Netherlands has introduced several measures to promote sustainability in agriculture. These include encouraging sustainable heating in greenhouse horticulture by discouraging natural gas use through pricing, reducing methane emissions from livestock via improved manure processing, and piloting climate-friendly land use practices with carbon storage in soil and vegetation. Policies also incentivize climate-conscious food consumption and minimize food waste. Despite numerous reforms under the Common Agricultural Policy (CAP) aimed at fostering sustainability, the sector’s environmental impact remains insufficiently addressed to protect biodiversity and combat climate change. At the European level, the Green Deal’s Farm to Fork Strategy attempts to take a comprehensive approach by involving all stakeholders—from farmers and food processors to consumers and retailers. However, this initiative faced a significant political backlash, with several legislative proposals being blocked. In the Netherlands, protests began in 2019 following a court ruling on nitrogen emissions, prompting the government to introduce measures with substantial implications for livestock farmers. A key observation is that policy discussions have predominantly centred on the roles of the government and the agricultural sector, with the government imposing requirements of societal importance that farmers must meet. However, such policies often result in additional costs for farmers without guaranteeing their ability to recover these expenses in competitive international markets. This dynamic resembles a zero-sum game.
India’s dairy farming sector has made remarkable progress within the cooperative framework. It comprises 22 Milk Federations or Apex Bodies, 240 district-level cooperative milk unions, 28 marketing dairies, and 24 Milk Producer Organizations. Together, these entities serve around 230,000 villages and involve 18 million dairy farmers as members. Additionally, the related supply and processing companies generate employment opportunities and contribute to social welfare initiatives and activities in rural areas. The key lesson that India can take from Netherlands is to involve the entire dairy sector, from animal feed producers, ranchers, traders, and processing companies to supermarkets. For sustainable transformation, engage the dairy sector fully, addressing not just sustainable production but also sustainable consumption, sustainable supply chain and government incentives with shared responsibility among all stakeholders.
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