India’s milk output is forecast to rise 2% to 105.4m tonnes in 2026
USDA forecasts higher Indian milk, butter and non-fat dry milk production in 2026, with domestic demand set to absorb most of the increase. The outlook reinforces India’s position as the world’s largest butter producer, while offering limited near-term export upside.
USDA forecasts higher Indian milk, butter and non-fat dry milk output in 2026, largely absorbed by domestic demand. India remains the largest global butter producer; the report does not project dairy export growth despite Amul’s international expansion.
Why this matters
The supply outlook aligns with Amul’s ₹700-crore Sankrail dairy project and planned North Bengal ice-cream plant, as Indian dairy brands expand premium paneer, cheese and yogurt beyond liquid milk.
Retail-company signals are accelerating, up 406433% QoQ.