New Delhi, Dec. 27 -- India's dairy sector is entering a phase of tighter supply and margin recalibration after navigating sharp cycles of disruption, surplus, and recovery over the past three years, according to insights from an expert session hosted by Systematix Institutional Equities.

The post-COVID period of 2022-23 proved challenging for the industry, marked by an unreasonable fall in milk prices that failed to cover farmers' production costs.

According to the Systematix report, this led to reduced cattle induction and a sharp drop in milk output.

From mid-2023, however, renewed farmer engagement by leading cooperatives and private players, including sustainable fodder programs, helped restore confidence and revive supply.

These...