Milky Mist Dairy Food has introduced stricter storage, handling and temperature-control procedures across its distribution network following a Food Safety and Standards Authority of India (FSSAI) advisory on the handling of perishable food products. The company has shared a comprehensive standard operating procedure (SOP) with its sales and distribution partners, including quick-commerce platforms, modern retail stores, distributors, carrying and forwarding agents, and depots.
The move comes as food safety authorities increase scrutiny of how products such as paneer, khoa, meat and fish are stored and transported. Milky Mist’s action is a preventive compliance measure following the general advisory, rather than confirmation of regulatory action against the company. The dairy maker had separately clarified in October that it had not received a specific notice or order from FSSAI or Tamil Nadu’s food safety department directing an inquiry into its paneer products.
Milky Mist Issues New Storage and Temperature-Control SOP
Milky Mist chief executive director and whole-time director K Rathnam told Moneycontrol that the company had issued detailed storage and temperature-control instructions to all its distribution partners.
The instructions cover the conditions that partners must maintain while handling the company’s products, including the required storage temperatures and other safeguards for perishable dairy items.
The company is extending the SOP beyond quick-commerce platforms. It also covers modern trade, warehouses, retail stores, distributors, carrying and forwarding agents, and depots.
Rathnam said the company had discussed the requirements with senior representatives across its distribution accounts. The objective is to ensure that products remain within the prescribed conditions throughout the journey from manufacturing facilities to consumers.
The move is particularly relevant as packaged dairy companies increasingly rely on multiple distribution channels, including online grocery platforms and rapid-delivery services.
What Did FSSAI’s Advisory Say?
FSSAI issued its advisory on October 15, 2026, addressing the handling, storage and transportation of perishable food commodities under controlled-temperature conditions.
The regulator said it had observed that products such as khoa, paneer, meat and fish were sometimes not being handled, stored or transported at appropriate temperatures.
These foods are vulnerable to microbial growth and spoilage when exposed to unsuitable conditions. Maintaining the required temperature throughout the supply chain is therefore important for protecting product quality and public health.
The advisory asks food business operators to follow several requirements:
- Temperature control: Maintain prescribed temperature conditions from procurement and sourcing through chilling, storage, transportation and final delivery.
- Hygienic transportation: Use clean, covered and hygienic vehicles suitable for carrying food products.
- Food-grade packaging: Use appropriate food-grade packaging and secondary packaging materials.
- Protection during transit: Prevent exposure to dust, moisture, pests, physical damage and cross-contamination.
- Traceability: Maintain appropriate records of consignments and provide invoices or other relevant documents when requested.
FSSAI also asked state food safety authorities, Indian Railways and its regional directors to ensure closer monitoring through inspections and transportation checks.
The regulator warned that non-compliance could result in enforcement action, including the seizure and destruction of food products.
Why Quick Commerce and Modern Retail Are Important
Milky Mist’s expanded SOP reflects the complexity of its distribution network.
According to the company’s investor presentation for the first half of FY27, its net sales were distributed across several channels:
| Distribution channel | Share of net sales |
|---|---|
| General trade | 31% |
| Modern trade | 22% |
| E-commerce | 20% |
| Hotels, restaurants and catering | 15% |
| Business-to-business | 8% |
| Exports and B2C | 4% |
Modern trade, e-commerce, hotels and restaurants, and B2B together accounted for approximately 65% of net sales.
These channels involve different storage facilities, delivery arrangements and handling processes. A product may pass through a manufacturing facility, warehouse, distributor, retail outlet and delivery partner before reaching a customer.
Maintaining consistent temperature conditions across all these stages is a significant operational requirement for companies selling chilled dairy products.
Quick-commerce platforms are especially important because they promise rapid delivery, but speed alone does not guarantee that products have been stored correctly before an order is placed.
Milky Mist’s decision to extend its SOP across the wider distribution network indicates that the company wants consistent handling standards rather than focusing only on online delivery partners.
Paneer Is a Major Part of Milky Mist’s Business
The increased attention to dairy storage is particularly important for Milky Mist because paneer is its largest product category.
The company reported paneer revenue of ₹304 crore in the September quarter, compared with ₹210 crore in the corresponding period last year. The category accounted for approximately 28% of revenue from operations of ₹1,089 crore.
Paneer, cheese, curd, ice cream and yogurt together contributed around 67% of the company’s second-quarter revenue.
This concentration makes product quality, freshness and distribution standards particularly important for the business.
Any disruption in cold-chain management could affect product quality, customer confidence and the company’s relationships with retail and distribution partners.
The company is therefore dealing with an operational issue that extends beyond regulatory compliance. Maintaining consistent product quality is also important for protecting its brand and supporting growth in the organised dairy market.
Milky Mist Had Earlier Denied Receiving a Specific FSSAI Notice
The latest development follows reports in October about alleged regulatory concerns involving Milky Mist’s paneer products.
On October 10, the company issued an exchange clarification stating that it had not received any specific notice, order or communication from FSSAI or the Tamil Nadu Food Safety Department directing an inquiry into its paneer products.
The company said it would respond appropriately if it received any communication from the relevant authorities.
That clarification is important when interpreting the November 2 development. The general FSSAI advisory applies to food businesses handling the specified perishable commodities. Milky Mist’s decision to tighten its operating procedures does not establish that the regulator has found its products unsafe or that the company has been penalised.
Instead, the company has responded by reinforcing its requirements for distribution partners amid wider regulatory scrutiny of food handling practices.
Raw Material Costs Add to the Company’s Operating Challenges
Alongside distribution and food safety requirements, Milky Mist is also managing higher raw material costs.
Rathnam told Moneycontrol that the company had increased prices by up to 10% in some categories. However, the impact of those increases was only around 1.5% in the September quarter because the revisions had recently begun.
The company expects a greater effect from the price increases in the third and fourth quarters of FY27.
This creates an additional challenge for the business. Higher input costs can put pressure on margins, while price increases need to be balanced against consumer demand and competition.
The company must therefore manage three connected priorities: maintaining product quality, controlling distribution costs and protecting profitability.
The Bigger Picture
FSSAI’s advisory highlights a broader challenge for India’s packaged food and dairy industry. As organised dairy brands expand through quick commerce, supermarkets and other retail channels, maintaining food safety becomes a shared responsibility across manufacturers, distributors, warehouses and delivery partners.
For companies such as Milky Mist, a strong manufacturing process is not sufficient if products are exposed to unsuitable conditions during storage or transportation. Effective cold-chain management, food-grade packaging, hygiene standards and traceability are essential throughout the distribution network.
The advisory could also encourage retailers and delivery platforms to strengthen their own storage procedures as food safety inspections become more rigorous.
Looking Ahead
Milky Mist’s next priority will be ensuring that its distribution partners consistently follow the new SOP. The effectiveness of the measures will depend on actual temperature monitoring, warehouse practices, transport conditions and documentation across the network, rather than simply issuing instructions.
For the wider dairy industry, FSSAI’s advisory reinforces the importance of maintaining food safety from procurement to final delivery. As packaged dairy consumption and online grocery distribution grow, cold-chain compliance is likely to become an increasingly important part of competition and consumer trust.
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