Lack of cold chains, innovation key challenges for dairy industry in India

Counting the challenges being faced by the Indian dairy industry, Ramesh Jolly, CEO, Finial Capital Inc, Ontario, Canada, on Friday said lack of cold chains at farm level and less number of innovative products are the key issues. At present, the Indian conditions are conducive for making innovations and taking them to the market by becoming entrepreneurs.


He was at the NDRI to chair the inaugural session of a two-day national convention on ‘Entrepreneurship in dairy and food industry: Concept to commercialization’, organized by NDRI Graduate Association (NGA) and the NDRI.

Jolly, an NDRI graduate and a successful entrepreneur having business in five countries, suggested that innovations in the development of value-added products, along with maintaining world-class quality, were the key to become a successful entrepreneur. One of the biggest drivers for the Indian dairy industry is the rising acceptance of value-added dairy products, based on consumer taste with a good shelf-life, through the modern organized retail industry.


India ranks at the top, globally, in milk production, holding an 18.5 per cent global market share, but the market is severely fragmented and less than 20 per cent of the milk is channeled through organized dairies, in comparison to 90 per cent in other developing countries. At present, about 58 per cent of the market share is in the shape of liquid milk, 19 per cent in ghee, followed by six per cent in paneer and the rest in other products. There is ample opportunity to capture the remaining 17 per cent market by young entrepreneur, he stated.

Dr RRB Singh, Director of NDRI, said the institute was in the process of changing the course curriculum to make BTech as well as the masters programme more industry oriented. “Students are being mentored by the industry leaders to become entrepreneurs. As many as 28 technologies developed at the NDRI have been commercialised in 2017-18 and many of them have been adopted by young entrepreneurs,” Jolly added.