Milk demand growth may exceed productivity without structural reforms: Heritage Foods

Brahmani Nara, executive director, Heritage Foods, in a fireside chat with BusinessLine editor Raghuveer Srinivasan at the Agri & Commodity Summit 2026.

Brahmani Nara, executive director, Heritage Foods, in a fireside chat with BusinessLine editor Raghuveer Srinivasan at the Agri & Commodity Summit 2026. Photo Courtesy: Bijoy Ghosh

Even though milk production in India is increasing annually, the country’s consumption is rising, potentially creating supply pressure if productivity does not improve, Brahmani Nara, executive director of Heritage Foods, said at the BusinessLine Agri & Commodity Summit 2026.

Speaking in a fireside chat session with BusinessLine editor Raghuveer Srinivasan, he said India remains self-sufficient in milk, but demand growth in some sectors is outpacing productivity gains.

“Milk production is growing at about 4 per cent. However, consumption is growing at a faster pace,” Brahmani said. He said that without structural intervention, supply-demand mismatches could emerge.

According to Brahmani, per animal productivity in India is much lower than in the US and Europe.

He said the focus should be on improving yield per animal rather than increasing herd size.

Furthermore, Brahmani identified breed improvement through artificial insemination, better mineral supplementation, improvement in animal feed quality and expansion of veterinary infrastructure as priority areas.

He also mentioned the government’s emphasis on livestock development and increasing the number of veterinarians, saying such measures are in line with the needs of the sector.

Apart from productivity, Brahmani underlined the company’s position in value-added dairy sectors.

Heritage Foods sees itself as a value-added dairy company, not just a fluid milk supplier, he said.

The company was an early entrant into the packaged curd space and has continued to expand into categories such as paneer, ghee, butter, cheese and ice cream.

He said the milk is procured from more than 300,000 farmers, about 70 percent of whom are women. The payments are transferred directly to the bank accounts of farmers every 10 to 15 days through a digital system, Brahmani said.

Additionally, he said the company conducts more than 25 quality tests per batch and aims to get milk from farm to shelf within 24 to 36 hours wherever possible.

Brahmani said procurement operations have been digitalised, quality testing is automated, and batch-level traceability has been introduced through “quick response” codes on packaging.

The company also uses analytics and artificial intelligence for demand forecasting and supply chain management.

Furthermore, Brahmani said dairy remains a significant contributor to agricultural production and provides a stable income source for rural families.

Published on February 27, 2026

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