In a significant move to boost the dairy sector, Swiggy Instamart has signed a Memorandum of Understanding (MoU) with the Ministry of Cooperation This strategic partnership aims to strengthen quick commerce linkages for dairy cooperatives, aligning with the government’s vision for prosperity through cooperation. The MoU falls under the broader umbrella of the ‘Sahakar Se Samriddhi’ initiative, which emphasizes cooperation as a tool for economic growth. Through this collaboration, dairy cooperatives will gain enhanced access to new-age retail platforms, thereby reaching a wider customer base efficiently.
Milky Ways Initiative to Spotlight Dairy Excellence
As part of its commitment, Swiggy Instamart launched the ‘Milky Ways: Legen-dairy Brands of India’ initiative under this agreement. This initiative focuses on highlighting the growth journey of India’s dairy sector, promoting discussions around the White Revolution 2.0, and beyond.
By doing so, Instamart aims to amplify the achievements of dairy cooperatives while showcasing their pivotal role in India’s retail transformation. Moreover, the platform will work towards bridging the gap between traditional dairy players and emerging urban consumer demands through quick commerce innovation.
Swiggy Instamart’s Role in Revolutionizing Dairy Access
According to Shriharsha Majety, Co-Founder and Group CEO of Swiggy, dairy products form a substantial portion of Instamart’s daily orders. In fact, he emphasized that milk and dairy items contribute to over one-third of Instamart’s order volume across various locations in India.
Consequently, this collaboration will not only support dairy cooperatives but will also cater to the growing consumer demand for quality dairy products. Furthermore, Swiggy Instamart will leverage its vast quick commerce network to ensure faster, fresher, and more reliable delivery of dairy products nationwide.
Government Support for Expanding Dairy Market Access
Dr. Ashish Bhutani, Secretary of the Ministry of Cooperation, expressed optimism about the role of quick commerce platforms in dairy promotion. He noted that partnerships like these offer significant opportunities for dairy cooperatives to expand their market presence in a rapidly changing landscape. Additionally, the Ministry believes that digital channels can transform the way dairy farmers and cooperatives interact with urban and semi-urban consumers. Through sustained efforts, the Ministry and Swiggy Instamart aim to empower cooperatives, helping them build stronger and more resilient distribution networks.
Quick Commerce Growth Drives Dairy Opportunities
The quick commerce sector in India has been growing at a staggering rate, driven by evolving consumer behaviors and urbanization trends. Industry estimates suggest that the quick commerce market will reach a value of $35 billion by 2030, growing at a 24% CAGR. Given this rapid expansion, the relevance of dairy products—like milk, curd, paneer, and butter—has also witnessed a significant upward trend. These products account for more than 30% of daily quick commerce orders, highlighting the increasing importance of the dairy category in e-commerce.
Quick Commerce: A New Avenue for Dairy Cooperatives
Dr. Meenesh Shah, Chairman and Managing Director of the National Dairy Development Board (NDDB), shared valuable insights on current trends. He revealed that quick commerce already accounts for about 4–5% of total sales for milk cooperatives, a number poised to grow further.
With rising urbanization and changing consumer habits, the share of quick commerce in dairy sales will likely see accelerated growth in coming years. Therefore, collaborations with platforms like Swiggy Instamart offer cooperatives an opportunity to tap into new revenue streams and consumer segments effectively.
Future Prospects for the Dairy Sector Through Quick Commerce
Overall, the partnership between Swiggy Instamart and the Ministry of Cooperation represents a forward-looking step towards dairy sector modernization. By embracing digital platforms, dairy cooperatives can enhance their operational efficiency while meeting the dynamic needs of today’s urban consumers. At the same time, this collaboration ensures that farmers benefit from improved market access, better price realization, and sustainable income growth. Going forward, initiatives like these will play a critical role in building a robust, inclusive, and tech-driven dairy supply chain across India.
