Page 14 - Dairy Dimension - July Aug 25

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In this exclusive Q&A, Dairy Dimension speaks with Ravin What has shaped your leadership style over the
Saluja, Director at Sterling Agro, one of India's leading years?
private dairy enterprises. From his early days in Chandni To be honest, I don't see myself as a leader in the
Chowk to building an international dairy brand, Mr. conventional sense. I see myself as a learner. Each day
Saluja shares reflections on policy, farmer engagement, brings new challenges—new market dynamics, supply
quality challenges, and why real change in Indian dairy chain issues, or changing farmer expectations—and with
starts with one farmer, one family at a time. them come fresh opportunities to learn and improve.
Mr. Saluja, could you tell us about your early I believe leadership is about being present and being
journey? How did you get into the dairy sector?
responsible. It's about staying grounded while creating
Dairy has always been part of my life. My grandfather value for all stakeholders—whether they are your
and father were in the business. Our retail shop was
employees, farmers, or consumers. It's a journey, not a
located in the bustling lanes of Chandni
badge.
Chowk—arguably one of India's most iconic wholesale
markets. It was a melting pot of commerce and culture, What makes the North Indian dairy sector unique
and that's where my practical education began. During compared to the South or West?
school holidays, I wasn't sent off to camps or coaching There are quite a few differences. In Maharashtra and
classes—I would be found at the shop, usually managing South India, there is a greater sense of industry
the cash counter, interacting with suppliers and cohesion. Private processors and cooperatives often
customers alike. work in alignment, especially when it comes to setting
This early immersion gave me firsthand exposure to how procurement prices or managing milk surpluses. They
dairy retail operates. Later, I began spending more time maintain a form of price discipline that benefits both
at our factory, observing quality checks, learning about farmers and processors.
lab testing, and gaining a deeper understanding of store In contrast, North India is far more fragmented. There is
management. So, there was no fixed date or ceremony little to no unity among manufacturers. Milk prices
when I "joined" the business. I grew into it organically, fluctuate frequently, often daily, creating
and in many ways, I still am.
unpredictability. And during elections, state-run
You've seen the industry evolve dramatically. What cooperatives tend to inflate milk procurement prices—a
are the most significant changes? populist move that disrupts market stability.
Back when I started, the dairy business was more Are subsidies distorting the dairy market?
straightforward. You sourced good-quality milk, ensured Yes, quite significantly. Currently, if a farmer supplies to
Transformation hygiene, and sold it with integrity. There were fewer a government-run cooperative, he may receive
layers of regulation, less paperwork, and certainly less
pressure. But things have changed—and in many ways, subsidies. But if the same farmer supplies to a private
Begins with for the better. dairy, he doesn't. That, to me, is unfair and
discriminatory.
Today, we operate in an ecosystem of GST compliance,
structured SOPs, traceability standards, and rising More troubling is the fact that these subsidies are often
One Farmer at a Time consumer expectations. One of the most significant absorbed into the procurement price rather than being

passed directly on to farmers. For instance, in Karnataka,
reforms has been the introduction of GST, which
Ravin Saluja brought much-needed transparency and curtailed tax the advertised subsidy of 6 per litre is often embedded
Director, Sterling Agro evasion. in the declared purchase price, so the farmer doesn't see
However, there's a caveat. The GST classification isn't any real gain. Meanwhile, this subsidised milk is being
always logical. For instance, placing milk fat—a highly sold in other states, creating an artificial price advantage.
nutritious product—in the 12% bracket, while refined Subsidies should benefit farmers, not distort the market.
edible oils fall into the 5% bracket, doesn't align with If states want to support their farmers, they should
public health priorities. This kind of policy mismatch can restrict subsidised products to local markets only.
hinder sectoral growth.

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