This end-to-end procurement solution, being launched in Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala, not only guarantees superior milk standards but also relieves businesses from the complexities of managing procurement, allowing them to focus on their core operations while benefiting from streamlined sourcing.

MilkLane will provide this service on a flexible model where B2B customers would have multiple options based on their needs. MilkLane would handle all aspects of procurement at competitive prices, while B2B customers can choose to deploy their own capex or opt for rental equipment provided by MilkLane. With no need for an extensive on-ground procurement team, businesses can save costs, and the ownership of the procured milk fully resides with them. Additionally, MilkLane would charge only for the procurement-related overhead costs. The customers would also have the choice to operate on either a cost-plus or a fixed-price model, that would be reviewed periodically, to ensure transparency and efficiency at every step.

As per industry data, the dairy industry in India was over INR 16,000 billion as of 2023. The market is projected to reach around INR 50,000 billion by 2032, exhibiting a CAGR of 12.88% during 2023-2032.

MilkLane would be driving the procurement services basis its extensive network of over 10,000 small farmers, digitally enabled infrastructure facilitated through more than 150 Bulk Milk Coolers (BMCs), and milk processing facility with a capacity of 2 lakh litres per day. These BMCs are strategically located and ensure milk is cooled within 45 minutes of milking. MilkLane’s quality assurance process with four levels of checks and over 40 tests conducted in central labs will ensure the highest standards of safety and quality. Additionally, MilkLane would offer 100% end-to-end traceability and a fully digitized transparent pricing model aligned with market price movements.

Avinash Kasinathan, Head of India Business at Innoterra, emphasized the critical need for stringent quality control in dairy supply chains. He noted that rising demand for safe, high-quality milk highlights the challenges of inconsistent fat levels, antibiotic contamination, and aflatoxins, which threaten product quality and consumer safety. MilkLane’s new procurement service addresses these issues by enforcing rigorous quality measures from sourcing to delivery. With a robust farmer network and advanced technology, MilkLane aims to be the trusted partner for businesses seeking reliable milk supply.

To further enhance quality, MilkLane employs a Quality-Driven Pricing model that prevents dilution and adulteration, stringent acceptance standards for milk testing, and advanced testing capabilities. The company also emphasizes on the nutritional excellence of the cattle, risk mitigation through quality management processes, and farmer empowerment through training and extension services.

In addition to its focus on quality, MilkLane is also committed to environmental sustainability and farmer-specific initiatives. The company has replaced plastic with 5,000 stainless steel cans for milk collection, further enhancing its commitment to delivering pure and safe dairy products.

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The Natfirst analysis identified several discrepancies, including varying net weights, inconsistent barcodes, and poor-quality images. Specifically, 65 products were missing multiple key labelling elements (such as the nutritional table, ingredients, and net weight), 232 products featured illegible images, and 139 products lacked a nutritional table altogether.

In response, the FSSAI has recently reactivated the draft Food Safety and Standards (Labelling and Display) Amendment Regulations, 2022. According to the FSSAI, e-commerce companies are now required to follow specific labelling and display standards for food products. This includes providing a clear image of the principal display panel of pre-packed foods and displaying their FSSAI License or Registration on the platform. Additionally, food products can be sampled at any point in the supply chain.

“The findings underscore an urgent need for retail intelligence solutions that enable real-time adherence to FSSAI’s norms in order to ensure consumer safety and transparency. It also highlights the ongoing challenge of maintaining high-quality food labelling standards with millions of products being sold each month across diverse sales platforms, reinforcing the need for regulatory compliance in both domestic as well as international markets,” emphasized Ravi Putrevu, Founder, Natfirst and TruthIn.

According to EuroMonitor, India is the third-largest packaged food market globally. Additionally, ECDB reports that monthly eCommerce grocery revenue exceeded INR 6,800 crore in July 2024, reflecting a 12.1% increase from June 2024.

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