Milk procurement system in India

Abstract

India, as the largest milk producer globally, contributes approximately 24% to global milk production, with rural areas forming the backbone of its dairy sector. Efficient milk collection is pivotal for sustaining the supply chain, especially as the industry adapts to technological advancements and government-driven initiatives. Understanding the current status, challenges and potential interventions in milk procurement is critical to improving the dairy sector's contribution to food security and rural livelihoods. This review compiles the development, current status and challenges of the milk collection system in India, with a focus on addressing the barriers faced by small-scale dairy producers and evaluating the role of technological and strategic interventions in optimising milk procurement. A comprehensive literature review was conducted using peer-reviewed journals, government reports, industry white papers and dairy sector reviews. Key insights were drawn from national and international studies, with specific emphasis on challenges in infrastructure, quality control and the organised and unorganised milk sectors. The review identifies considerable barriers for small-scale dairy producers, such as inadequate infrastructure, poor access to quality control measures and limited adoption of modern technology and these issues negatively affect both organised and unorganised sectors. Technological advancements, such as automated milk collection systems alongside strategic interventions such as fair pricing policies and capacity-building initiatives, are found to improve efficiency, quality, quantum in milk procurement and ultimately the livelihood of rural dairy farmers in milk procurement. To address the multifaceted challenges of India's growing dairy industry, cohesive strategies encompassing policy reforms, technological integration and capacity building are necessary. These measures will not only enhance milk quality and farmer income but also ensure the sustainability of India's dairy sector, fostering its role in global food systems.