Sector profile

Dairy

Uttar Pradesh is India's largest milk-producing state. This page covers national milk output from Government of India data and the incentives under the UP dairy policy.

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Milk processing plant with steel silos at Banas Dairy, Palanpur, Gujarat — Photo: BanasDairy via Wikimedia Commons, CC BY-SA 4.0

Importance to the Indian economy

India's milk production reached 247.87 million tonnes in 2024-25, up from 230.58 million tonnes in 2022-23 (Department of Animal Husbandry & Dairying, Basic Animal Husbandry Statistics).

Uttar Pradesh is the top milk-producing state, with a 15.66% share in 2024-25 (15.72% in 2022-23). Chilling, processing and value-added products (paneer, ghee, milk powder, cheese) build on that base, and the state dairy policy supports each of them.

The last three years in official data

Figures as published by the Government of India source linked against each year. We do not estimate or fill gaps.

India's milk productionmillion tonnes

2022-23

230.58 MT

2023-24

239.30 MT

2024-25

247.87 MT

Bars start at zero and are scaled to the largest value shown.

Year	Value (million tonnes)
2022-23	230.58 MTSource: PIB, 26 Nov 2023 (PRID 1979950)
2023-24	239.30 MTSource: PIB, 26 Nov 2025 (PRID 2195049)
2024-25	247.87 MTSource: PIB, 26 Nov 2025 (PRID 2195049)

Other official data points

Uttar Pradesh's share: 15.72% of India's milk in 2022-23 and 15.66% in 2024-25, the highest of any state. Source: PIB (PRID 1979950 and 2195049).

What is not shown, and why: Milk production for 2025-26 is released with the next Basic Animal Husbandry Statistics (usually in November) and was not available when we checked.

UP incentives for this sector

The Uttar Pradesh policy that applies to this sector, with the main incentives as stated in the policy or on Invest UP. Rates, caps and eligibility conditions are summarised; the policy text and its guidelines decide each case.

In force

Uttar Pradesh Dairy Development & Milk Products Promotion Policy 2022

Notified 17 Oct 2022, for five years

Incentive	Support (as per the policy)
Capital investment grant	10% of capital cost for dairy units, up to ₹5 crore
Interest subsidy, new milk processing units	5% a year for 5 years, on loans up to ₹10 crore
Interest subsidy, cattle feed units	5% for 5 years, on loans up to ₹7.5 crore
Interest subsidy, expansion / technology upgrade	5% for 5 years, on loans up to ₹2.5 crore
Exports and quality	Transport to port 25% (₹20 lakh a year for 3 years); testing 50% (up to ₹5 lakh); patents 75% (up to ₹5 lakh)

A GO dated 26 Apr 2025 on stamp and electricity duty reimbursement could not be downloaded for review; confirm these heads with the department.

Source: Invest UP policy page

Applicable across sectors. A manufacturing project of ₹50 crore or more can also be evaluated under the UP Industrial Investment & Employment Promotion Policy 2022 (valid to 3 Nov 2027), and an MSME unit under the UP MSME Promotion Policy 2022. As a rule only one state policy can be used for the same investment, so compare the sector policy with these general policies on your own numbers before applying. Central schemes can often be combined with state support: see subsidy stacking.

Food processing sector

Sources

Scheme terms change; verify on the official portal; last checked 4 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.

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