In this exclusive Q&A, Dairy Dimension speaks with Ravin Saluja, Director at Sterling Agro, one of India’s leading private dairy enterprises. From his early days in Chandni Chowk to building an international dairy brand, Mr. Saluja shares reflections on policy, farmer engagement, quality challenges, and why real change in Indian dairy starts with one farmer, one family at a time.
Mr. Saluja, could you tell us about your early journey? How did you get into the dairy sector?
Dairy has always been part of my life. My grandfather and father were in the business. Our retail shop was located in the bustling lanes of Chandni Chowk—arguably one of India’s most iconic wholesale markets. It was a melting pot of commerce and culture, and that’s where my practical education began. During school holidays, I wasn’t sent off to camps or coaching classes—I would be found at the shop, usually managing the cash counter, interacting with suppliers and customers alike.
This early immersion gave me firsthand exposure to how dairy retail operates. Later, I began spending more time at our factory, observing quality checks, learning about lab testing, and gaining a deeper understanding of store management. So, there was no fixed date or ceremony when I “joined” the business. I grew into it organically, and in many ways, I still am.
You’ve seen the industry evolve dramatically. What are the most significant changes?
Back when I started, the dairy business was more straightforward. You sourced good-quality milk, ensured hygiene, and sold it with integrity. There were fewer layers of regulation, less paperwork, and certainly less pressure. But things have changed—and in many ways, for the better.
Today, we operate in an ecosystem of GST compliance, structured SOPs, traceability standards, and rising consumer expectations. One of the most significant reforms has been the introduction of GST, which brought much-needed transparency and curtailed tax evasion.
However, there’s a caveat. The GST classification isn’t always logical. For instance, placing milk fat—a highly nutritious product—in the 12% bracket, while refined edible oils fall into the 5% bracket, doesn’t align with public health priorities. This kind of policy mismatch can hinder sectoral growth.
What has shaped your leadership style over the years?
To be honest, I don’t see myself as a leader in the conventional sense. I see myself as a learner. Each day brings new challenges—new market dynamics, supply chain issues, or changing farmer expectations—and with them come fresh opportunities to learn and improve.
I believe leadership is about being present and being responsible. It’s about staying grounded while creating value for all stakeholders—whether they are your employees, farmers, or consumers. It’s a journey, not a badge.
What makes the North Indian dairy sector unique compared to the South or West?
There are quite a few differences. In Maharashtra and South India, there is a greater sense of industry cohesion. Private processors and cooperatives often work in alignment, especially when it comes to setting procurement prices or managing milk surpluses. They maintain a form of price discipline that benefits both farmers and processors.
In contrast, North India is far more fragmented. There is little to no unity among manufacturers. Milk prices fluctuate frequently, often daily, creating unpredictability. And during elections, state-run cooperatives tend to inflate milk procurement prices—a populist move that disrupts market stability.
Are subsidies distorting the dairy market?
Yes, quite significantly. Currently, if a farmer supplies to a government-run cooperative, he may receive subsidies. But if the same farmer supplies to a private dairy, he doesn’t. That, to me, is unfair and discriminatory.
More troubling is the fact that these subsidies are often absorbed into the procurement price rather than being passed directly on to farmers. For instance, in Karnataka, the advertised subsidy of ₹6 per litre is often embedded in the declared purchase price, so the farmer doesn’t see any real gain. Meanwhile, this subsidised milk is being sold in other states, creating an artificial price advantage.
Subsidies should benefit farmers, not distort the market. If states want to support their farmers, they should restrict subsidised products to local markets only.
Let’s talk about your farmer engagement model. What are you doing at the grassroots?
We’ve made it a mission to improve conditions at the farm level, starting with small but impactful changes. In a few villages near Fatehpur, western Uttar Pradesh, we’ve adopted farmer families and worked with them on chain-free cattle rearing and biogas generation.
We observed that many farmers tether their animals throughout the day, with limited space for movement. We encouraged them to install fencing around their open areas, set up automatic scrubbing posts for the cows, ensure continuous access to water, and provide feed throughout the day. This significantly reduced stress on the animals and improved milk yields by up to 20%.
In parallel, we supported them with affordable biogas digesters. These not only reduce the use of firewood but also save the women of the household from inhaling harmful smoke. The families are healthier, and the savings are real.
We are undertaking this initiative in collaboration with Nestlé and Unilever as part of their sustainability and emissions reduction programmes. It’s slow, but impactful work. One farmer at a time.
Is farm inheritance becoming a challenge in India, similar to what is happening in Europe?
Absolutely. The dynamics may be different, but the essence remains the same. In India, many young people are attracted to the glamour of urban life. Social media plays a massive role in creating unrealistic expectations about careers and lifestyles.
What often happens is they move to cities, only to realise that job opportunities are limited, the cost of living is high, and the reality is far from what they imagined. Either they return to their villages disillusioned or end up working jobs that fail to utilise their potential.
I strongly feel that if rural youth used digital tools to promote their agricultural innovations, their farms, or create entrepreneurial content, we would see a rural revival. But unfortunately, less than 1% use it that way. Most are caught up in the noise.
There’s growing concern about milk adulteration. How do you ensure quality at Sterling Agro?
Quality starts at the source—the farm. We emphasise farmer training in basic hygiene, including washing hands, cleaning the udder before milking, and sterilising milk cans. These are small steps, but they make a huge difference.
We did a small experiment. Two farmers from the same village—one who received training and one who didn’t—showed stark differences in the quality of milk supplied. Cleanliness impacts bacterial count, shelf life, and flavour.
To consumers, I have a strong message: Never buy loose paneer from the open market. It’s unhygienic and unregulated. Always choose vacuum-packed paneer. Yes, it may feel firmer because of moisture removal, but it’s safe. If needed, soak it in warm water to soften.
And beware of analogue paneer or fake ghee—especially from brands using religious symbolism. These products often mislead consumers in the name of trust.
You have a strong export presence. What are your learnings from international markets?
Exports are challenging but rewarding. When we entered Indonesia, we had to spend almost three years just convincing buyers that our buffalo milk doesn’t come from water buffalo, but from black cow buffaloes—a breed known for its superior milk.
Global buyers are sceptical. New Zealand, Australia, and the EU set their benchmarks. We had to conduct detailed lab tests, co-develop trials, and undergo multiple audits. But once trust is built, you gain not just access to a market, you gain credibility.
We now apply the same rigour to our domestic business. Export markets have made us sharper, more process-driven, and far more quality-conscious.
Final thoughts—what is the most critical thing Indian dairy needs today?
In one word: consistency. We need consistency in policies, pricing structures, regulatory enforcement, and farmer engagement.
The current environment is reactive. Every state and every stakeholder has its agenda. However, if we can align on national goals—such as improving productivity per animal or building global-scale processing units—then Indian dairy can truly compete globally.
We must move from subsidy politics to sustainability economics. That’s the future.
Note: This interview was conducted prior to the GST Council meeting, where Ravin has been a prominent advocate for the reduction of GST on dairy products.