The drought conditions are expected to significantly impact the availability of feed and fodder, leading to reduced animal productivity and slower growth in milk production. This could strain the supply of milk and dairy products, potentially driving up domestic prices. The reduced export capacity of skimmed milk powder may also affect India's position in the global dairy market. Smallholder farmers, who dominate India's dairy sector, may face economic challenges due to the reduced productivity of their livestock. Additionally, the drought could exacerbate existing vulnerabilities in regions heavily reliant on agriculture and dairy farming.