By Dairy Dimension News Desk
Published: June 2025 | Source: Logistics Insider Magazine
As India grapples with extreme heat and energy volatility, Amul, the flagship brand of the Gujarat Cooperative Milk Marketing Federation (GCMMF), is deploying an ambitious solar-powered cold chain strategy to safeguard its dairy supply. The move not only tackles climate-induced spoilage but also positions Amul at the forefront of sustainable dairy logistics in one of the world’s fastest-growing milk markets.
🌡️ The Heat Threat to Indian Dairy
India’s annual milk production has surpassed 221 million metric tonnes; however, 3% of the total is lost to spoilage, primarily due to power outages and inadequate rural cooling infrastructure. In 2025, heatwaves reaching 43 °C and rising diesel costs have put immense pressure on cold storage and logistics, raising concerns over milk safety, farmer incomes, and consumer affordability.
🔋 Amul’s Solar Cold Chain Revolution
In response, Amul is scaling its investment in solar milk chillers and solar-powered cold storage, especially across Gujarat, Uttar Pradesh, and Rajasthan. These systems, capable of rapidly reducing milk temperature from 35°C to 4°C, operate off the grid using battery-backed solar panels.
- 26,000+ litres/day chilling capacity
- 160 kW of solar deployed (targeting 1,000 kW)
- ₹1 saved per litre for farmers
- 3% reduction in spoilage in UP districts
“This is about climate-smart logistics,” said a GCMMF spokesperson. “We’re preserving quality, reducing emissions, and supporting farmers where it matters most.”
đźš› Refrigerated Transport Meets IoT Innovation
Amul’s transport fleet—essential for connecting 1,200 cooperatives and 2.1 million farmers—was upgraded in 2025 with IoT temperature sensors and real-time alerts. This ensures that dairy products, such as cheese and paneer, maintain optimal conditions (0–4°C), even during 12-hour trips through remote or rugged regions.
In southern markets like Tamil Nadu, demand for chilled dairy is rising rapidly, prompting a 20% expansion in Amul’s fleet and new third-party logistics partnerships to optimise delivery costs.
📉 Holding the Line on Affordability
Despite rising costs, Amul’s cooperative model—which returns up to 80% of the consumer price to farmers—is helping contain inflation. Efficient chilling and logistics reduce wastage, enabling Amul to offer affordable dairy in Tier-2 and rural markets like Bhubaneswar, even as fuel and freight expenses surge.
⚠️ Challenges Remain
But scaling solar logistics is no easy feat:
- Cold storage gap: Only 2% of India’s rural areas have adequate chilling
- Skill shortage: Few trained technicians for solar maintenance
- Upfront costs: Despite subsidies (e.g., ₹10 crore via PM SAMPADA), capex remains high
Amul is responding through:
- FPO partnerships and training programs
- New investments, like a ₹600 crore facility in Kolkata
- State and central collaboration to access green infrastructure funds
🌍 A Model India’s Food Resilience Amul’s initiative isn’t just about transforming India’s perishable supply chain, where 40% of produce is wasted. With the dairy market projected to hit USD 163 billion by 2027, climate-ready infrastructure could define the sector’s next phase.
“Our focus is on sustainable growth that benefits farmers and consumers alike,” said Jayen Mehta, GCMMF Managing Director.