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Food PackagingBlockchain-led traceability gains traction as dairy sector pushes for...

Blockchain-led traceability gains traction as dairy sector pushes for trust and transparency

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Blockchain-led traceability gains traction as dairy sector pushes for trust and transparency

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As the Indian dairy sector navigates rising consumer awareness and global quality expectations, traceability is steadily moving from concept to necessity. At a recent industry session during Anuga FoodTec India 2026, policymakers and industry leaders explored how technology can help build trust across the value chain – from farm to consumer.

Setting the tone, Varsha Joshi, additional secretary, Department of Animal Husbandry and Dairying, made it clear that traceability is no longer optional. “It is absolutely essential,” she said, adding that without it, “getting the trust of the global consumer is always going to be difficult.”

At the same time, she pointed out that the shift is being driven just as strongly within India. Consumers today are far more aware and particular about what they consume. Whether it is the type of milk, fat content, or purity, “there is a lot of awareness, and it is only going to grow over time,” she noted, underlining the urgency for systems that can answer these questions credibly.

Encouragingly, the regulatory groundwork is also taking shape. Joshi shared that the Bureau of Indian Standards is close to finalizing traceability standards for the sector. This, she suggested, could become a key enabler for scaling adoption across the industry. Reflecting on earlier doubts, she remarked that not long ago, many believed traceability in milk was impractical. “People used to say it’s a liquid product – how do you trace it?” she recalled, before adding that pilot projects have already proven otherwise.

From the industry’s perspective, Chetan Narake, director at Gokul Milk, echoed that traceability has quickly moved from being a “future concept” to a present-day expectation. As he put it, consumers now want to know everything – from where the milk originates to what the animal was fed and whether antibiotics were used. “They want to understand the entire journey of the product,” he said.

Narake explained that achieving this level of transparency requires tracking at every stage – farm, processing, and logistics. While processing facilities are increasingly digitized with sensors capturing key parameters, the farm level remains a work in progress. Data on animal health and feeding practices remain largely manual, though efforts are underway to digitize them. Emphasizing the basics, he cautioned that the entire system hinges on reliable inputs. “If your data is incorrect, there is no point – garbage in, garbage out,” he said, stressing that building the right data foundation is critical.

Bringing in the technology lens, Shaunak Dave, managing director and CEO of Antares Vision India, described how the post-pandemic period has accelerated digital adoption across industries. He pointed to three key shifts – rapid digitalization, supply chain disruptions, and a rise in conscious consumerism. Today’s consumer, he said, expects instant access to information, calling it the “power of one scan,” where a simple QR code can unlock product details on demand.

However, Dave also highlighted a deeper issue – the trust gap within the dairy ecosystem. Concerns around quality, pricing fairness, and transparency have created disconnects between farmers, processors, and consumers. In this context, technologies like blockchain can play a critical role. By creating a decentralized and tamper-proof system, they offer what he described as “a single source of truth” that all stakeholders can rely on.

Even so, the discussion made it clear that adoption needs to be practical. Joshi advised that companies should begin with niche or premium products, where the cost of traceability can be more easily absorbed, and the value proposition is clearer. In fact, she noted that their own pilot initiatives followed a similar approach, starting with ghee.

Narake, meanwhile, suggested a phased strategy. Rather than implementing everything at once, he said the focus should be on getting each part of the value chain right before integrating it. Blockchain, in his view, becomes relevant when all these elements come together, particularly at points where trust gaps exist. “Within a controlled system like a plant, you already know what’s happening,” he explained, indicating that the real need for blockchain arises when data moves across stakeholders.

Cost and accessibility also emerged as key concerns. Narake pointed out that with most Indian farmers operating at a very small scale, solutions must be affordable to achieve widespread adoption. Otherwise, he warned, traceability risks remaining limited to larger, well-funded players.

Dave agreed that while technology comes at a cost, its implementation can be tailored. Drawing parallels with the pharmaceutical sector, he explained that traceability systems there have significantly improved efficiency, compliance, and recall management. The same principles, he suggested, can be adapted for dairy – depending on the scale and need of each organization.

Interestingly, the conversation also extended beyond traceability to productivity. Narake highlighted that improving yield per animal is equally critical for the sector’s future competitiveness. Technologies like IoT and AI, he said, can play a role here as well, helping optimize feed and improve output.

In her closing remarks, Joshi brought the discussion back to the larger picture. From a policy standpoint, she said, “traceability is equal to accountability.”

Mahan Hazarika
Mahan Hazarika
Mahan Hazarika is the Editor of The Packman since 2017. Having spent more than a decade reporting on the printing and packaging industries, he brings a wealth of industry knowledge, perspective, and insight to his work. Outside the newsroom, Mahan is passionate about ZG music, travel, and films.

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