Dairy Supply Holds Firm: How India Kept Milk Prices Stable Amid West Asia Conflict Crisis

Dairy Supply Holds Firm: How India Kept Milk Prices Stable Amid West Asia Conflict Crisis​

New Delhi saw assurance Tuesday as the government confirmed that milk and dairy prices remain stable nationwide, with absolutely no interruption in supply despite ongoing tensions in West Asia. Officials stated that the dairy value chain has maintained robust operations, ensuring continued payments to farmers and consistent access to essential inputs.

Puja Rustagi, Director in the Department of Animal Husbandry and Dairying, addressed stakeholders, noting that milk procurement and processing have remained uninterrupted. She confirmed that the stability is maintained even during the current West Asia crisis period.

India, standing as the world's largest milk producer, has shown resilience. The nation's total milk production was recorded at 247.87 million tonnes during the 2024-25 period.

Ensuring Uninterrupted Supply Across the Value Chain​

The Department of Animal Husbandry and Dairying conducted an inter-ministerial briefing to review the sector's status. Ms. Rustagi stated that there are "no issues" related to the crucial supply lines, including fuel, gas, and plastic packaging material.

To proactively manage logistical challenges, the department held a comprehensive meeting with state milk Federations and milk unions across India on Monday. This meeting was critical to monitor the potential impact of the West Asia crisis on the entire dairy sector operations.

Mitigating Fuel and Packaging Material Shortages​

Addressing energy needs, Rustagi clarified that the Ministry of Petroleum and Natural Gas issued an order dated April 8th 2026. This order guarantees that critical industries, including dairy processing plants, will receive 70 per cent of their pre-March 2026 bulk non-domestic LPG supply.

Consequently, all dairy plants are strongly advised to transition from LPG to piped natural gas (PNG) wherever operationally feasible. This shift aims to significantly reduce the sector's overall dependence on LPG sources.

Regarding packaging, the director confirmed there is no shortage of materials. She emphasized that the supply of polypropylene and polystyrene, key inputs for packaging, has been fully ensured.

Leveraging Digital Tools and Streamlining Exports​

The government has deployed several modern mechanisms to ensure smooth operational flow. A dedicated monitoring portal was launched on March 30, 2026. This portal allows all state federations and milk unions to report and track the availability of milk, fuel, and packaging materials in real time.

To reinforce industry coordination, the department is actively coordinating with plastic packaging material suppliers. This coordination was enhanced by flagging concerns through a joint working group convened by the Ministry of Petroleum and Natural Gas.

Furthermore, to facilitate international trade, a simplified animal quarantine clearance procedure was notified on March 25, 2026. This measure is specifically designed to ease the return of exported cargo to Indian ports.