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India, the world’s largest milk producer, contributes over 23 per cent of global milk output, powered largely by smallholder farmers and an expansive cooperative network. Despite this scale, the sector continues to struggle with inefficiencies such as fragmented supply chains, post-harvest losses, inconsistent quality, and limited technological adoption, especially in rural and unorganised areas. In recent years, however, a tech-driven shift is reshaping the dairy landscape. Startups, cooperatives, and private players are introducing innovations like AI-based advisory platforms, IoT-enabled milk monitoring, blockchain traceability, and real-time quality testing. These technologies aim to modernise every link in the dairy value chain—from farm to consumer. This cover story delves into how these emerging technologies are transforming Indian dairying, identifies gaps that hinder rural and large-scale adoption, and compares India’s progress to global benchmarks. It also highlights key future directions, including public-private partnerships, regional tech models, grassroots skilling, and sustainability initiatives that can shape the next phase of dairy development.
India’s dairy sector is a cornerstone of the rural economy, directly engaging more than 80 million households across the country. The vast majority of these are smallholder farmers, each typically owning just two to three milch animals. This decentralised, small-scale structure makes India’s dairy landscape both unique and complex, blending traditional practices with emerging modern techniques. While the country has a long-standing culture of milk consumption and livestock rearing, the operational fragmentation continues to pose challenges in ensuring consistency, quality, and traceability in milk production.
Despite these constraints, India has maintained its position as the world’s largest milk producer. According to the National Dairy Development Board (NDDB), milk production in India reached an estimated 230 million tonnes in 2024–25, growing at a compound annual growth rate (CAGR) of over 5 per cent. Technological adaptation plays a major role in achieving this target. The Indian dairy industry is increasingly exploring advanced technologies to improve productivity, quality, and farmer welfare. A notable example is CowGPT, launched in Punjab and Rajasthan by eVerse.AI. This AI-powered tool, available via WhatsApp in multiple Indian languages, provides real-time advice on animal health, nutrition, and breeding to over one lakh farmers, including those with limited digital skills. Amul’s upcoming dairy plant in Assam, set for 2025, will process over 1 lakh litres of milk daily using automated grading and a tech-enabled cold chain, benefiting more than 20,000 farmers by reducing losses and ensuring quality. Another notable advancement is NDDB’s collaboration with Madhya Pradesh to introduce Automatic Milk Collection Systems in 2025, enabling real-time quality testing and faster, transparent payments, reducing adulteration. In Karnataka’s dairy ecosystem, IoT-driven systems have been integrated to increase milk yield by 15 per cent and lower disease rates. These innovations highlight how India’s dairy sector is embracing digital solutions to enhance efficiency and empower millions of smallholder farmers.
“India’s dairy industry stands as one of the most dynamic and rapidly expanding pillars of the country’s agricultural economy. As the world’s leading milk producer, India has cultivated a resilient dairy ecosystem that plays a crucial role in GDP contribution, rural livelihoods, and national nutrition security. Driven by rising demand, shifting consumer expectations, and a surge in technological innovation, the sector is now well-positioned for accelerated and sustainable growth in the years ahead,” stated Gopinath Baskaran, Founder and Director of Kabilai Farm.
Traditionally, much of the innovation has centred around supporting farmer economies in dairy, cattle management and animal health, focusing on improving productivity, disease control, and breeding practices. These improvements have been critical in boosting milk yields and enhancing farmer incomes, laying a strong foundation for modernisation. However, the scope of technology in the dairy sector is rapidly expanding beyond the farm. Increasingly, innovations are addressing challenges in supply chain management, product traceability, milk freshness, and quality testing. Cutting-edge solutions like blockchain for tamper-proof record keeping, AI-driven analytics for demand forecasting, and IoT-enabled cold chain monitoring are now gaining traction. These advancements are vital for ensuring product safety, minimising losses, and building consumer trust in a highly fragmented market.
As a result, a growing number of Indian dairy technology startups are entering the scene, offering a diverse range of solutions tailored to the unique complexities of India’s dairy ecosystem. From digitising milk collection to real-time quality testing and transparent supply chains, these innovations are helping the industry move towards greater efficiency and sustainability.
Dairy-tech for growth and modernisation
Many dairy tech players are increasingly making their mark in the Indian dairy industry, addressing long-standing challenges with innovative solutions. Startups and companies are introducing technologies to ensure quality and safety, streamline operations, reduce wastage, ensure transparency, and enhance farmer incomes. With growing consumer demand for quality and traceable dairy products, tech-driven interventions are gaining momentum across the value chain. This surge of innovation signals a transformative shift, positioning technology as a key enabler of growth and modernisation in India’s dairy ecosystem.
Prompt Equipments, a frontrunner in India’s dairy technology landscape, has made remarkable strides in modernising the sector. TrackSure, developed by the company, is the world’s first AI-powered, patented end-to-end crate management system. By integrating industrial-grade sensors, cameras, and web analytics, TrackSure enables real-time tracking of milk crates, cutting down losses and boosting operational efficiency. Continuing its tech-forward approach, the company unveiled SmartBox —an IoT-enabled device designed to monitor key parameters like temperature, milk volume, and CIP status in bulk milk coolers. At the 2024 Inter Dairy Expo, the company also launched the MBRT Machine for microbiological milk testing, highlighting its commitment to quality, traceability, and tech-driven growth.
While commenting on the company’s advanced tech solutions, Shridhar Mehta, Managing Director of Prompt DairyTech, said, “Prompt TrackSure is a patented, AI-powered, cost-effective, end-to-end crate management system that will help dairies increase their efficiency and traceability in real time, without disturbing the current dairy processes. Prompt TrackSure provides numerous benefits for dairy manufacturers, including improved accuracy, reduced labour costs, high-speed processing, efficient inventory management, enhanced traceability, easy integration and data insights and reporting. The system is also cost-effective, AI and ML-enabled and patented.”
Stellapps Technologies, another dairy-tech pioneer, has continued to break new ground with its ecosystem-based approach. In 2024, it raised $26 million in Series C funding to expand mooMark, its venture focused on contract manufacturing of traceable, premium dairy products. Stellapps is also working with India Post Payments Bank to bring digital financial services to dairy farmers, bridging the gap between rural banking and the dairy economy. The company’s ongoing push to integrate AI into cattle health monitoring demonstrates a broader commitment to combining agritech and fintech for holistic development across the dairy value chain.
MilkLane, a dairy initiative by agri-tech platform Innoterra, is redefining how milk quality and traceability are maintained at the source. Its Bulk Milk Cooler model ensures milk is chilled within 45 minutes, achieving a high MBRT of over 3 hours. The iDairy platform enables complete traceability by allowing access to source and testing data, ensuring transparency for consumers and buyers alike. With over 30 quality parameters tracked, MilkLane has positioned itself as a reliable supplier for products like UHT milk and infant formulas. Beyond milk quality, MilkLane has empowered over 10,000 farmers in 100+ villages through digital payment integration, contributing to both productivity and financial inclusion in southern India.
Speaking about the quality parameters, Harish Sharma, Managing Director and CFO of Dairy business at Innoterra, said, “We have over 30 quality parameters for the milk. We procure milk from the farmers. This ensures consistent quality of milk, which is necessary for many processed milk products such as infant formulations, cultured milk products, UHT milk and more. As a result, our buyers can eliminate quality-related issues and costs associated with poor or rejected products. Milk products made with MilkLane can achieve better quality and longer shelf life.”
Another player named Everest Instruments has carved out a niche in high-end dairy and food testing technologies. In a landmark launch, the company introduced YAMA, India’s first domestically designed FTIR-based milk analyser capable of detecting milk composition and adulterants in just 30 seconds. The device is poised to revolutionise village-level collection by offering a cost-effective and precise testing alternative to expensive imported machines. Everest also unveiled GC4500, a first-of-its-kind dual-function gas chromatography system for analysing milk fat’s fatty acids and triglycerides, enhancing the ability to monitor nutritional quality and product authenticity. These solutions were showcased at the 50th Dairy Industry Conference, gaining endorsement from NDDB.
On the other hand, Amul is pushing the boundaries of dairy packaging and processing technology. In 2025, it commissioned two cutting-edge SIG aseptic filling machines at its Kheda Satellite Dairy in Gujarat. With the addition of the SIG Slimline 12 Aseptic and SIG XSlim 24 Aseptic, Amul has increased its capacity to serve a growing demand for long-shelf-life dairy products. These additions bring its total SIG filling lines to five, marking a strong investment in scalable, hygienic, and efficient dairy packaging infrastructure.
Global comparison
While India is rapidly catching up with targeted innovations, especially in cattle management and farmer-level tech, gaps persist in infrastructure, enforcement, and scale. Global systems are more mature, automated, and standardised. India’s challenge lies in scaling tech solutions across its vast, diverse, and largely unorganised dairy ecosystem.
In terms of supply chain management, developed nations such as the US, New Zealand, and members of the EU operate highly integrated, GPS-enabled logistics systems that automate milk flow from farms to retail. Companies like algoMilk (Spain) provide predictive analytics for farm operations, optimising milk production and distribution. Similarly, Dairy Farmers of America (DFA), one of the largest dairy cooperatives in the United States, has implemented sophisticated Distribution Management Systems (DMS) to enhance its supply chain operations. By utilising DMS, DFA efficiently manages and tracks deliveries, optimises routes, and streamlines distribution processes across its extensive network of dairy farms and retail partners. This integration of technology enables real-time visibility and control over the supply chain, ensuring timely delivery of dairy products from farms to consumers while minimising losses and improving overall efficiency. In contrast, India’s supply chain remains largely fragmented, dominated by smallholders and intermediaries.
When it comes to cold chain infrastructure, countries like Denmark and the Netherlands employ energy-efficient, sensor-based refrigeration systems that ensure uninterrupted milk chilling and transport. A strong global example of cold chain innovation in the dairy industry is FrieslandCampina, a Dutch multinational dairy cooperative. Their cold chain integrates IoT technologies that continuously track temperature, humidity, and product location to minimise spoilage and maintain product quality from farm to shelf. FrieslandCampina also partners with technology providers to implement energy-efficient cooling solutions, including solar-powered refrigeration in some regions, aligning with sustainability goals while ensuring uninterrupted cold chain operations, even in rural or remote areas. This level of tech-enabled infrastructure sets a benchmark for global dairy cold chain systems. India’s cold chain, while improving, still lags due to inconsistent power supply and a lack of coverage in remote areas.
In quality testing, developed markets have set the bar with automated, real-time systems that analyse fat, SNF, protein content, and adulterants using high-end technologies like Fourier-transform infrared (FTIR) spectroscopy and gas chromatography. FOSS, a Denmark-based company, pioneered automated, real-time quality testing technologies such as the MilkoScan FT3, is widely adopted in Europe, North America, and other developed dairy markets, enabling processors to conduct rapid, high-throughput testing with minimal human intervention. This ensures consistent quality control and compliance with stringent food safety standards—something still in transition in many parts of India’s unorganised dairy sector. India is making strides with tools like Everest Instruments’ YAMA FTIR-based milk analyzer, but manual methods still dominate in the unorganised sector, limiting accuracy and consistency.
On the safety testing front, global dairy operations implement stringent protocols for detecting pathogens, antibiotic residues, and toxins at multiple stages. Neogen Corporation, a US-based company, develops solutions, such as BetaStar Advanced for antibiotic residue detection and ANSR systems for pathogen testing, are widely used by dairy processors across North America, Europe, and parts of Asia. These technologies support routine, multi-stage safety checks, helping global dairies maintain compliance with stringent regulations like those of the U.S. FDA and the EU Food Safety Authority. In India, such testing is less consistent, especially in informal markets. While organised dairies are investing in lab-based screening and digital solutions, nationwide enforcement remains weak, affecting consumer safety and confidence.
Traceability is another area where global markets have moved ahead by leveraging blockchain, QR codes, and IoT systems to track milk from “cow to cup.” Europe and North America are leading in this integration, offering end-to-end transparency. Digital Twin system of Connecting Food, a French agrifood tech company, allows every batch of milk or dairy product to be traced from farm to shelf, verifying quality, origin, and compliance with sustainability or safety standards. In India, startups like StaTwig and MilkLane are pioneering similar models using blockchain and tech-enabled sourcing data. Yet, infrastructure and awareness limitations continue to hinder widespread adoption.
Finally, in operational efficiency, the global dairy industry increasingly uses AI and machine learning for predictive logistics, inventory management, and optimising milk routes. Cainthus, an Irish agri-tech company that employs computer vision and predictive analytics to monitor cattle health and behaviour remotely. Their system uses cameras and AI to track feed intake, locomotion, and well-being, enabling early intervention and improved dairy herd management across large farms in North America and Europe. India, meanwhile, is progressing through innovations, but uneven tech penetration across regions means these tools are yet to make a uniform national impact.
“With Indian dairy-tech startups making significant inroads into areas like cattle management and supply chain optimisation, the landscape is gradually transforming. These innovations are beginning to address long-standing inefficiencies in the sector. However, to truly meet the evolving expectations of modern consumers, who increasingly demand transparency, traceability, and assured quality, greater investment in advanced technology is essential,” said Mariam Sultan, Client Success Associate, MarketsandMarkets.
Next Big Steps
To ensure widespread and effective adoption of dairy technology in India, a multi-dimensional strategy is essential. While the country has made significant strides in dairy production, integrating advanced technologies across the value chain remains uneven due to infrastructural, educational, and environmental challenges. A forward-looking approach must prioritise not just innovation, but also its contextual relevance and accessibility.
To scale dairy technology across India, robust public-private partnerships (PPPs) are essential. Collaborations between government bodies like the National Dairy Development Board (NDDB) and state cooperatives with private dairy tech companies create an ecosystem where innovation meets implementation. These partnerships can ensure the equitable deployment of technologies, such as automatic milk collection units, animal health monitors, or cold chain systems, while also securing funding and regulatory support. For instance, NDDB’s work with various state governments and private players has enabled the roll-out of digitised milk procurement systems and herd management tools across rural India. Such collaborations can also attract global investment and expertise, helping local solutions scale efficiently.
India’s geographical diversity demands technology that’s not only advanced but also adaptable. What works in the highlands of Himachal Pradesh may not be suitable for the coastal humidity of Tamil Nadu or the drought-prone areas of Maharashtra. Custom tech solutions—like solar-powered chillers for off-grid areas or disease prediction models tuned to local breed and climate data—are critical for success. Tailoring innovations to suit local environmental and infrastructural realities ensures higher farmer participation and long-term viability of technology deployment.
Adoption of dairy tech will remain limited without targeted education and training at the grassroots. Many smallholder farmers are unfamiliar with digital tools or scientific cattle management practices. Skilling initiatives need to focus on building digital literacy, explaining the use of automated equipment, and encouraging the adoption of data-driven decision-making. Dairy cooperatives, startups, and government training institutes must collaborate to run workshops, mobile training units, and helplines in local languages.
As climate change impacts agriculture and livestock systems, technologies that reduce greenhouse gas emissions, improve feed efficiency, conserve water, and manage waste effectively are critical. Sustainable practices also position Indian dairy producers favorably in export markets that demand eco-compliance. Integrating such solutions with farmer incentives and awareness programs can drive adoption while safeguarding the planet.
“In many parts of India, consumers still prefer unpacked, unprocessed milk delivered by local milkmen, valuing its taste and perceived freshness. However, the informal sector often falls short in ensuring consistent quality, as milk sold in loose form is frequently adulterated with additives to delay spoilage. This is where large dairy companies can play a crucial role—by investing in advanced technologies to guarantee quality, safety, and traceability. From struggling with milk shortages to becoming the world’s top producer, India’s dairy sector has come a long way. With strategic and widespread tech adoption, the industry can unlock new growth, benefitting both farmers and consumers,” said Sugandha Banerjee, Senior Analyst at Bloom Energy.
India is rapidly catching up with innovations tailored for smallholder farmers and localised challenges. While impressive progress is visible in areas like cattle management and digital advisory platforms, the country still trails global standards in infrastructure, automation, and quality assurance. The road ahead requires both public and private investment to bridge these gaps and elevate Indian dairy to a globally competitive level. With the right blend of innovation, collaboration, and inclusivity, technology can make India not just the largest producer but also the most advanced and sustainable dairy ecosystem in the world.
Mansi Jamsudkar