Dairy fats - Butter and Ghee

About 39 per cent of the country’s milk production is used for producing butter and gh
strange to anyone outside India but ghee is the most important milk product in India. G
bulk commodity with prices fluctuating on daily basis.

Table 1: Production and consumption of butter and ghee

Year Production Consumption
2002 2,400 2,399
2003 2,450 2,449
2004 2,600 2,608
2005 2,749 2,743
2006 3,050 3,055
2007 3,360 3,360
2008 3,695 3,687
2009* 4,065 4,062
2013* 5,027 5,205

Chart 1: Evolution of butter and ghee production 2002-2013

Dairy Fats Production ('000 t)

Production

0 1,000 2,000 3,000 4,000 5,000

 0 1,000 2,000 3,000 4,000 5,000

Source: USDA and HS&SL estimates *Forecast

Indian Dairy Exports from 1995-96 to 20

The bulk of the milk in India is consumed in liquid form by the producer households. Al
levels in urban centres, the demand for processed dairy products has gone up leaving le
Exports of dairy products have been erratic – rising in one year and falling in another, e
during the past ten years has been of growth.

Table 2: Indian dairy exports from 1995-96 to 2008-09

Year Quantity Value
(in tons) (In million)
1995-96 4,712 326
1996-97 2,018 154
1997-98 2,378 134
1998-99 2,568 137
1999-00 6.134 372
2000-01 11,069 839
2001-02 24,774 1,825
2002-03 21,440 1,536
2003-04 8,918 871
2004-05 42,160 3,587
2005-06 75,551 6,767
2006-07 45,372 4,346
2007-08 69,415 8,666
2008-09* 75,541 10,772

Chart 2: Exports of dairy products from 1995-96 to 2008-09

Quantity (in tons)

80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
6 7 8 9 0 1 2 3 4 5 6 7 8 *
-9 -9 -9 -9 -0 -0 -0 -0 -0 -0 -0 -0 -0 09
 50,000
40,000
30,000
20,000
10,000
0
- 96 - 97 - 98 -9
9
- 00 - 01 - 02 - 03 - 04 - 05 - 06 - 07 - 08 0 9*
95 96 97 9 8 99 00 01 02 03 04 05 06 07 0 8-
19 19 19 19 19 20 20 20 20 20 20 20 20 20

Source: APEDA, Ministry of Commerce, Govt. of India

National Milk Production from 1994-95 to 2011-12

India is the largest producer of milk in the World. India's milk production was 100.9 million
of Jammu & Kashmir) during 2006-07. India’s milk production has been continuously increa
estimates that the production will continue to grow at the rate of 3 per cent per annum. Du
during the years when milk production grows at 3 per cent per annum, milk availability per
cent per annum.

Table 3: Milk production from 1994-95 to 2011-12

Year Milk Production Per capita Availabilty
(mio tons) (g per day)
1994-95 63.8 194
1999-2000 78.3 217
2000-01 80.6 220
2001-02 84.4 225
2002-03 86.2 230
2003-04 88.1 231
2004-05 92.5 233
2005-06 97.1 241
2006-07 100.9 245
2007-08 103.9 252
2008-09 107 256
2009-10 110.3 260
2010-11 113.6 264
2011-12 117 269
Source: Department of Animal Husbandry, Govt. of India
2007-08 onwards figures are HS&SL estimates

Chart 3: Increaing milk production and per captiva availability

2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
 2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05 Column C
2003-04 Column D
2002-03
2001-02
2000-01
1999-2000
1994-95
0 50 100 150 200 250 300

Milk converted into Products

Nearly 45 per cent of the total milk production is consumed as liquid milk. 47 per cent is co
traditional products like cottage butter, ghee, paneer (cottage cheese), khoya (milk boiled a
Only 8 per cent of the milk is used in the production of western products like milk powders
and processed butter.

Table 4: Utilization of milk in different dairy products

Items Total milk production Total quantity converted

(%) (%)
Fluid milk 44.5
Manufactured milk 55.5 100
Ghee 32.7 58.9
Curd 7.8 14
Butter 6.3 11.4
Khoa 4.9 8.8
Ice cream 0.7 1.3
Cream 1.9 3.4
Other products 1.2 2.2
Source: estimates by indiaagronet.com

Chart 4: Milk converted into products

Fluid milk
Manufactured milk
Ghee
Curd
Butter
 Fluid milk
Manufactured milk
Ghee
Curd
Butter
Khoa
Ice cream
Cream
Other products

Economic Growth

India’s annual Growth Rate of GDP per capita was 1.52 per cent in 60’s, 0.75 per cent in
and 3.73 per cent in 90’s. It is clear that even though the contagion of global downturn
fundamentals of Indian economy continue to be strong. As the world economy improve
race ahead.

Table 5: Annual Growth Rate of Per capita Net National Product from 2000-01 to 2007-08
Year Growth rate at Current prices Growth rate at 1990s prices
(%) (%)
2000-01 5.1 1.8
2001-02 6.6 3.7
2002-03 6.2 2
2003-04 10.5 7
2004-05 11.1 5.6
2005-06 12.1 7.9
2006-07 13.5 8.2
2007-08 12.7 7.6
Source: Economic Survey 2008-09 Govt. of India

Chart 5: – Annual Growth Rate of Per capita Net National Product from 2000-01 to 200
16

14

12

10

8
Growth rate at Current prices
14

12

10

8
Growth rate at Current prices
6 Growth rate at 1990s prices

0
1 2 3 4 5 6 7 8
0 -0 1 -0 2 -0 3 -0 4 -0 5 -0 6 -0 7 -0
2 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00
r producing butter and ghee. This may sound
nt milk product in India. Ghee is traded as a

2-2013

('000 t)

2002
2003
2004
2005
2006
2007
2008
2009*
2013*

4,000 5,000 6,000

 4,000 5,000 6,000

*Forecast

m 1995-96 to 2008-09

he producer households. Also, with increasing income

ucts has gone up leaving lesser surpluses for export.
ear and falling in another, even though the overall trend

ns)

Quantity (in tons)

05 6 7 8 *
-0 -0 -0 09
 Quantity (in tons)

05 - 06 - 07 - 08 0 9*
05 06 07 0 8-
20 20 20 20

4-95 to 2011-12

oduction was 100.9 million tons (subject to provisional estimates

as been continuously increasing over the past six decades. HS&SL
of 3 per cent per annum. Due to increasing population, even
annum, milk availability per capita will grow at only about 1.5 per
 Column C
Column D

250 300

Products
iquid milk. 47 per cent is converted into
heese), khoya (milk boiled and dried) and curd.
products like milk powders, processed cheese,

id milk
nufactured milk
ee
d
tter
 id milk
nufactured milk
ee
d
tter
oa
cream
am
her products

ent in 60’s, 0.75 per cent in 70’s, 3.70 per cent in 80’s
tagion of global downturn has affected India, the
e world economy improves, Indian economy is sure to

from 2000-01 to 2007-08

duct from 2000-01 to 2007-08

t Current prices
t Current prices
t 1990s prices