India, which accounts for nearly a quarter of the world’s milk production, is witnessing a quiet but far-reaching digital transformation in its dairy sector. At a time when scale, transparency, and farmer welfare have become central to agricultural policy, digital platforms developed by the National Dairy Development Board are reshaping how milk is produced, collected, processed, and delivered. From assigning a digital identity to every animal to optimising milk transport routes using GIS, technology is emerging as the backbone of the world’s largest dairy ecosystem.
Why Digitalisation Matters for Indian Dairying
India’s dairy economy rests on millions of small and marginal farmers, daily transactions, and perishable logistics. Traditional systems often suffered from information gaps, manual errors, delayed payments, and inefficient transport. Digital tools promise to address these challenges by ensuring traceability, real-time data access, and transparent financial flows, while preserving the cooperative structure that underpins India’s dairy success.
National Digital Livestock Mission and Pashu Aadhaar
The National Digital Livestock Mission (NDLM), implemented by NDDB in collaboration with the Department of Animal Husbandry and Dairying, aims to create a unified digital livestock ecosystem known as “Bharat Pashudhan.” At its core is the idea that every animal should have a digital identity linked to health, breeding, and productivity records.
Under this mission, a unique 12-digit bar-coded ear tag—called “Pashu Aadhaar”—is issued to livestock. This functions as a primary key for recording vaccinations, breeding, treatment, and other services. By November 2025, over 35.68 crore animals had been issued Pashu Aadhaar, with more than 84 crore field transactions logged on the platform. Supporting tools like the 1962 mobile app and toll-free veterinary helpline extend these digital benefits directly to farmers’ doorsteps.
Automating Trust Through the Milk Collection System
Daily milk procurement is the heart of India’s cooperative dairy model. To make this process transparent and error-free, NDDB developed the Automatic Milk Collection System (AMCS). The system digitally records milk quantity and quality parameters and enables instant, direct payment to farmers’ bank accounts.
Operational across more than 26,000 Dairy Cooperative Societies in 12 states and Union Territories, AMCS benefits over 17.3 lakh milk producers across 54 milk unions. Real-time SMS alerts, mobile-based digital passbooks, and multilingual applications ensure that farmers remain informed and confident about their transactions, reinforcing trust in cooperative institutions.
End-to-End Digitisation Through NDDB Dairy ERP
Beyond procurement, dairying requires efficient management of processing, inventory, finance, and distribution. The NDDB Dairy ERP (NDERP), built on an open-source platform, integrates these functions into a single web-based system. From milk processing plants to distributors, stakeholders can manage orders, invoices, payments, and analytics through desktop and mobile interfaces.
Crucially, NDERP is integrated with AMCS, creating a seamless digital chain from cow to consumer. Features such as production mass-balancing and analytical dashboards help dairies reduce losses and make data-driven decisions without incurring costly proprietary software fees.
Strengthening Breeding Systems with Digital Oversight
Productivity in dairying depends heavily on genetics and breeding efficiency. The Semen Station Management System (SSMS), developed under the World Bank-supported National Dairy Plan I, digitises operations at semen stations. It tracks bull lifecycle management, semen production, quality control, and biosecurity while ensuring compliance with national protocols.
SSMS is linked with national platforms such as INAPH, enabling end-to-end traceability of semen doses supplied across the country. Currently, 38 graded semen stations use this system, strengthening India’s artificial insemination network and improving herd productivity.
Data-Driven Planning via Internet-based Dairy Information System
Efficient policymaking requires reliable data. The Internet-based Dairy Information System (i-DIS) provides a unified platform for milk unions, federations, marketing dairies, and feed plants to report and analyse operational data. Around 198 milk unions and 15 federations currently use i-DIS to benchmark performance, track procurement and sales, and support evidence-based planning. Over time, this has contributed to the creation of a national cooperative dairy database, improving sectoral governance.
Cutting Costs with GIS-Based Milk Route Optimisation
Milk transportation is one of the most cost-intensive components of the dairy value chain. NDDB’s use of GIS technology for milk route optimisation replaces manual planning with data-driven mapping of procurement and distribution routes. Pilot projects in regions such as Vidarbha, Marathwada, Assam, Jharkhand, and Indore have demonstrated significant savings in fuel, time, and logistics costs. The free, web-based route planning tool developed by NDDB now allows cooperatives to adopt this scientific approach nationwide.
What to Note for Prelims?
- India produces about 25% of global milk output.
- Pashu Aadhaar is a 12-digit unique ID for livestock under NDLM.
- AMCS ensures automated milk collection and direct farmer payments.
- i-DIS supports performance benchmarking among dairy cooperatives.
What to Note for Mains?
- Role of digitalisation in improving farmer welfare and transparency.
- Importance of traceability and data integration in livestock management.
- NDDB’s contribution to cooperative resilience through technology.
- Use of GIS and ERP systems for efficiency in agricultural value chains.
