The Indian dairy sector’s path to the global market through supply chain digitalization

In 2024–25, India produced about 248 million tonnes of milk. The industry supports the livelihoods of over eight crore families, most of whom are small and marginal farmers, and contributes 6 percent to the country’s economy. Despite high production volumes, the share of dairy exports accounts for less than one percent.

The current structure of the dairy industry is characterized by high fragmentation: a significant portion of milk comes from millions of households with small livestock and passes through informal distribution channels. Traditional logistics, including collection, cooling, processing, and transportation, often fail to provide the level of traceability, quality, and consistency required for the international market.

To address this challenge, it is proposed to supplement physical infrastructure—collection centers, cooling and processing plants—with digital systems. Using technologies at various stages makes it possible to monitor livestock health indicators, milk quality, temperature regimes during transportation, and the compliance of product batches at plants. International buyers require confirmation of compliance with standards, including control of antibiotic levels, aflatoxins, and microbiological indicators.

India does not plan to transition to a model of large concentrated farms, prioritizing the existing distributed production network. The main task is to integrate this network into modern data collection systems and international food safety standards. The experience of Stellapps, a company that connects farmers, collection points, and processors through digital systems, shows that the greatest effect is achieved when technologies are adapted to the existing realities of the Indian dairy sector.