A two-year project, launched in drought-affected Jaisalmer district, aims to revive the industry by marketing camel milk to hotels and tourists visiting historic palaces and desert towns.

"The response to camel milk as a health drink and to an ice cream made from the milk has been very encouraging," said project coordinator Ilse Kohler-Rollefson, with hotels already signing up for the products.

Ice cream is being made in two flavors -- saffron-pistachio and strawberry-vanilla.

The Food and Agriculture Organization says camel milk has a vitamin C content three times higher than cow's milk. It is also rich in iron, unsaturated fatty acids and vitamin B.

"It is also shown to reduce blood sugar levels in diabetes patients," Kohler-Rollefson said. "At a later stage, we plan to market it for diabetes patients in the cities."

India faces a diabetes crisis as people eat more sugar-rich foods and drinks. Camel milk is already being marketed as a health food in the Gulf and several African countries.

Rajasthan's camel population has plunged by about 50 percent over the last 10 years to below 400,000 animals as poor breeders sell female animals for slaughter, while males are kept for hauling carts.