Digitalizing India’s Dairy Sector 

Syllabus: GS3/Economy

In News

• India is increasingly using digital tools to enhance productivity, transparency, and support for farmers in Dairy Sector 

Digitalizing India’s Dairy Sector 

• India is the world’s largest producer of milk, accounting for 25% of global output. 
• It is modernizing its dairy sector through digital tools that boost productivity, transparency, and farmer welfare. 
• The National Dairy Development Board (NDDB) leads these efforts by connecting farmers, cooperatives, and stakeholders, improving operations, reducing inefficiencies, and enhancing traceability across the dairy value chain.

Various Steps 

• National Digital Livestock Mission (NDLM) : It implemented by NDDB in collaboration with the Department of Animal Husbandry and Dairying (DAHD), represents a major step toward a unified digital livestock ecosystem called “Bharat Pashudhan.”
  • The Bharat Pashudhan database records field activities such as breeding, artificial insemination, health services, vaccination, and treatment
  • All livestock are tagged with a 12-digit “Pashu Aadhar” to track vaccinations, breeding, and treatment, with over 35.68 crore IDs issued by November 2025. 
  • Farmers can access records via the 1962 app or toll-free number for veterinary services and scheme information.
• Automatic Milk Collection System: It digitizes milk collection at Dairy Cooperative Societies, recording quantity, quality, and fat content, with instant payments to farmers. It ensures transparency, traceability, and real-time updates, while providing cooperatives with data insights.
  • Operational in 12 states/UTs, AMCS serves over 26,000 societies and 17.3 lakh farmers across 54 milk unions, strengthening India’s digital and inclusive dairy ecosystem.
• The NDDB Dairy ERP (NDERP): It  is a comprehensive, web-based enterprise resource planning system developed and customized specifically for the dairy and edible oil industries. 
• The Semen Station Management System (SSMS): It is a comprehensive digital platform designed to streamline the production of Frozen Semen Doses (FSD) and ensure adherence to the Minimum Standard Protocols (MSP) and Standard Operating Procedures (SOPs) set by the Government of India.
  • It covers all core operations of semen stations, including bull lifecycle management, semen production, quality control, biosecurity, farm and fodder management, and sales tracking. 
  • It is connected to the Information Network for Semen Production and Resource Management (INSPRM), a national portal that enables real-time data sharing between semen stations and field-level systems like INAPH (Information Network for Animal Productivity and Health).
  • Developed under the National Dairy Plan I (NDP I), a World Bank-funded initiative implemented by NDDB.
• The Internet-based Dairy Information System (i-DIS): It provides a unified digital platform for dairy cooperatives, unions, and federations to collect, share, and analyze data on milk procurement, sales, production, and inputs. With participation from 198 milk unions, 29 dairies, 54 cattle-feed plants, and 15 federations, i-DIS creates a reliable national database, supporting evidence-based planning, benchmarking, and policy-making in India’s dairy sector.
• Milk Route Optimisation: The NDDB has introduced milk route optimisation using GIS technology to make India’s dairy supply chain more efficient and cost-effective.
  • By mapping procurement and distribution routes digitally, cooperatives can reduce transportation distance, fuel costs, and delivery time. 
  • Pilot projects in regions like Vidarbha Marathwada, Varanasi, West Assam, Jharkhand, and Indore have shown significant savings. 

Significance 

• Use of AI, IoT sensors, blockchain, and mobile apps enables real-time monitoring of cattle health, milk quality, and supply chain logistics.
• Digital platforms help farmers access direct payments, veterinary services, and market prices, reducing dependence on middlemen.
• Digital records ensure quality assurance, vital for exports and consumer trust.

 Key Challenges

• Smallholder farmers contribute most of India’s milk, making standardization and digital integration difficult.
• Many rural producers lack training to use apps and digital tools effectively.
• Poor internet connectivity, cold chain facilities, and rural electrification hinder adoption.
• High upfront investment in IoT devices, sensors, and automated systems is unaffordable for small farmers.

Conclusion and Way Forward 

• India’s dairy sector is undergoing a major digital transformation led by the National Dairy Development Board (NDDB). 
• By combining cooperative strength with digital innovation, India is creating a traceable, efficient, and sustainable dairy value chain.
• This transformation is not only technological but also social and economic, empowering rural households and enhancing global competitiveness, supported by policy initiatives like Digital India.

Source :PIB