Regulating the Dairy Industry in India: Ensuring Safety, Quality, and Consumer Protection

India is the world’s largest milk producer, contributing over 22% of global output and supporting the livelihoods of more than 80 million dairy farmers. Despite its scale and economic significance, the dairy industry faces persistent challenges related to quality, safety, adulteration, processing standards, and fair market practices. To safeguard consumers and strengthen the sector, India has established a comprehensive legal framework governing the production, processing, distribution, and sale of dairy products.

This article examines the major laws and regulations shaping India’s dairy industry, current challenges, and the evolving legal landscape aimed at protecting both producers and consumers.

Importance of Regulating the Dairy Sector

Milk is a staple in Indian households and forms the basis of numerous products—curd, ghee, paneer, butter, ice cream, and packaged beverages. Given its perishability and susceptibility to contamination, regulating the dairy sector is essential for:

• Ensuring food safety and hygiene

• Preventing adulteration

• Promoting fair trade practices

• Protecting public health

• Maintaining consumer confidence

• Ensuring ethical treatment of dairy animals

With rapid urbanization and increasing demand for processed dairy products, legal oversight has become more critical than ever.

Key Legal Frameworks Governing Dairy Products in India

India’s dairy laws are primarily governed by food safety regulations, standards, and cooperative legislations. The most significant among these include:

A. Food Safety and Standards Act (FSSAI), 2006

The FSSAI consolidated multiple food-related laws and established the Food Safety and Standards Authority of India (FSSAI) as the primary regulatory body for food quality and safety. Under FSSAI:

• All dairy businesses must obtain a license or registration.

• The FSSAI sets standards for milk composition, including fat, solids-not-fat (SNF), and microbiological requirements.

• Strict rules govern pasteurization, packaging, labeling, and storage.

• Inspections, sampling, and lab tests ensure adherence to safety norms.

FSSAI also issues guidelines for flavored milk, milk powders, fermented products, and infant nutrition products.

B. Prevention of Food Adulteration (PFA) Act, 1954 (now superseded)

Before FSSAI, the PFA Act played a pivotal role in combatting milk adulteration. Although replaced by FSSAI, many judicial precedents still reference the PFA’s definitions and penalties.

C. Bureau of Indian Standards (BIS)

BIS sets quality standards for:

• Milk powder

• Ghee

• Butter

• Paneer

• Processed dairy items

BIS certification ensures products meet uniform safety and quality parameters.

D. The Milk and Milk Products Order (MMPO), 1992

MMPO was introduced to regulate the production and processing of milk. Key provisions include:

• Registration of dairy plants handling more than 10,000 liters/day

• Hygiene and equipment standards for processing units

• Requirements for procurement, storage, transportation, and distribution

After GST and FSSA, MMPO is no longer the primary authority, but its principles remain embedded in dairy regulation.

E. Cooperative Laws: The Anand Model

The success of dairy cooperatives led by Amul, was facilitated by cooperative societies acts at the central and state levels. These laws regulate:

• Farmer membership

• Profit sharing

• Pricing structures

• Cooperative governance

Cooperatives remain the backbone of India’s dairy development program.

The Issue of Milk Adulteration: A Persistent Legal Challenge

Despite strict laws, milk adulteration remains a major concern. Common adulterants include:

• Water

• Urea

• Detergents

• Synthetic milk

• Preservatives like formalin

• Starch or glucose

Adulteration not only affects nutrition but can cause serious health risks. Under FSSA:

• Adulteration attracts heavy penalties, including imprisonment in cases involving unsafe substances.

• State food safety departments conduct raids, testing, and surveillance.

• FSSAI’s “Food Safety on Wheels” labs test samples in rural areas.

However, enforcement gaps, supply chain fragmentation, and inadequate testing infrastructure continue to make adulteration a widespread problem.

Standards for Packaging, Storage, and Distribution

Dairy products require strict cold-chain maintenance. Indian law mandates:

• Proper pasteurization and chilling before distribution

• Hygienic packaging materials (food-grade plastics, aseptic cartons, etc.)

• Accurate labeling with fat content, expiry date, and storage instructions

• Regulation of transport vehicles to maintain temperature control

FSSAI periodically updates packaging standards to reduce contamination risks and ensure shelf stability.

Regulation of Animal Health and Ethical Practices

Animal welfare is intrinsically linked to dairy quality. Multiple laws intersect with dairy operations:

• Prevention of Cruelty to Animals Act, 1960

• State Animal Husbandry Rules

• Guidelines on cattle feeding, housing, and veterinary care

Regulations prohibit:

• Overuse of oxytocin injections (illegal under law)

• Inhumane treatment of cattle

• Unsanitary milking environments

Poor animal welfare directly impacts milk safety, making this a critical legal concern.

Challenges in Implementing Dairy Laws

Despite strong regulatory frameworks, implementation gaps persist.

A. Fragmented Supply Chain

India’s dairy supply chain includes millions of small farmers, local vendors, middlemen, and unorganized processors. Monitoring such a decentralized system is difficult.

B. Limited Testing Infrastructure

Not all states have adequate laboratories or resources to frequently test milk samples, especially in rural areas.

C. Consumer Unawareness

Many consumers cannot identify adulterated milk or understand labeling standards, reducing pressure on violators.

D. Technological and Cost Barriers

Small dairy units may struggle with the cost of compliance, such as installing pasteurizers or cold-chain equipment.

Government Initiatives and Future Directions

To strengthen dairy regulation, several new initiatives are underway:

A. FSSAI’s Clean Milk Campaign

Promotes hygienic milking practices, farmer training, and improved veterinary support.

B. Strengthening Testing Facilities

Mobile labs, rapid test kits, and upgraded food labs aim to improve surveillance.

C. Digital Traceability

Efforts to digitize the supply chain from farm to consumer are gaining traction.

D. Support for Small Producers

Subsidies, training, and cooperative support seek to encourage compliance without burdening small farmers.

E. Export-Oriented Standards

As India expands dairy exports, alignment with Codex and international standards is increasing.

Conclusion

The dairy industry is central to India’s agricultural economy and daily nutrition, making strong legal oversight essential. While India has established robust laws through FSSAI, BIS standards, animal welfare guidelines, and cooperative frameworks, implementation challenges persist especially regarding adulteration, testing, and supply chain monitoring.

As consumer awareness grows and technology transforms dairy operations, India is gradually moving toward a safer, more accountable, and globally competitive dairy sector. Continued reforms, stricter enforcement, and collaboration between government, cooperatives, and industry will be key to ensuring that milk, the nation’s most consumed food remains safe, pure, and trustworthy.