19JULY 2025In an interaction with Industry Outlook, Rahul Kumar, COO of Parag Milk Foods discusses the evolving challenges and advancements in India's dairy sector, highlighting how dairy cooperatives and private companies are working to improve milk quality and supply chain efficiency. He addresses the impact of limited cold chain infrastructure, the slow adoption of blockchain technology, and the vital role of smallholder farmers in milk production. With over 20 years of expertise in dairy operations, strategic leadership, and supply chain management, Rahul Kumar has led teams of up to 6,000 members, excelling in driving efficiency and executing large-scale projects globally.INDUSTRY INSIGHTSADDRESSING RAW MILK SUPPLY CHALLENGES THROUGH LOCAL SOURCING VERTICAL INTEGRATIONDairy cooperatives in India handle a large share of raw milk but face challenges with quality assurance and distribution. How are they adapting to improve the milk supply chain efficiency?Dairy Cooperatives have been enjoying the lion's share in milk procurement, though now private dairy companies also collect a good share. In many states, private companies collect more milk than cooperatives. The challenges faced by both are common, and tremendous improvements have been made in the milk supply chain by installing Bulk Milk Coolers (BMC) in the villages, ensuring the timely chilling of milk and hence preserving quality. Rural infrastructure, like better road conditions, has reduced logistics delays.With limited cold chain infrastructure and the slow adoption of blockchain technology, what measures can ensure quality and traceability in dairy?Limited cold chain infrastructure in India significantly impacts the quality and shelf life of raw milk. To address this, many dairy players are investing in Bulk Milk Coolers (BMCs) and chilling centers to ensure the timely chilling of milk. Additionally, better testing machines at collection points are being deployed to ensure milk is adulterant-free and of high quality.Blockchain technology is being explored for raw milk traceability, though regulatory hurdles slow its adoption. Digitalization is key to overcoming these barriers, starting with initiatives like equipping cattle with chips linked to farmers' digital IDs. This approach ensures that milk is sourced only from farmers with disease-free cattle, enabling complete traceability back to the source.Smallholder farmers often face challenges due to lack of support and infrastructure. What targeted initiatives are being taken to address these barriers and increase their participation in local sourcing networks?Rahul Kumar, COORahul Kumar, COO, Parag Milk Foods
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