Amul Hits ₹1 Lakh Crore in Sales; MD Says India Could Be Dairy to the World Within a Decade

Why It Matters

The sales breakthrough and tax reforms boost farmer incomes, accelerate organized‑sector growth, and lay the groundwork for India to become a major dairy exporter, reshaping global supply dynamics.

Key Takeaways

• Amul reaches ₹1 lakh crore (~$12 bn) annual sales.
• India produces 25% of global milk; target 33% in 10 years.
• 2025 GST cuts lower dairy taxes, boosting farmer revenue.
• Cooperative model returns >80% of consumer spend to producers.
• Value‑added dairy products drive higher margins and export potential.

Pulse Analysis

Amul’s crossing of the ₹1 lakh crore sales threshold marks a watershed moment for India’s dairy landscape. The cooperative’s scale—spanning 18,600 villages, 120 processing plants and more than a million retail points—translates into a $12 billion revenue stream that rivals major multinational food firms. This growth reflects not only rising domestic consumption but also a strategic push into over 50 export markets, positioning Indian dairy as a credible competitor on the world stage.

The 2025 GST overhaul, which cut rates on ghee, butter, ice‑cream and paneer to as low as zero, is reshaping the economics of the sector. By narrowing the price gap between consumers and producers, the reforms have pushed the farmer‑to‑consumer revenue share above 80%, far outpacing the 35‑40% typical in the U.S., Europe or New Zealand. The tax parity also erodes the cost advantage of unorganised players, encouraging more milk to flow into the regulated cooperative network, where quality standards and traceability are higher.

Looking ahead, the emphasis on value‑added dairy—such as fortified yogurts, cheese, and ready‑to‑drink beverages—offers higher margins and longer shelf lives, essential for export growth. Mehta’s vision of India supplying one‑third of global milk within ten years hinges on scaling these premium products and leveraging the cooperative model’s farmer‑centric profit distribution. If realised, India could transition from the world’s largest milk producer to a dominant dairy exporter, reshaping global trade patterns and delivering sustained rural prosperity.