Union Home and Cooperation Minister Amit Shah on Saturday said the Centre will adopt and scale up the cooperative dairy model pioneered in Banaskantha, Gujarat, to build a national circular dairy economy that could increase the incomes of dairy farmers by at least 20% over the next five years. He made the announcement while addressing a gathering in Vav-Tharad after inaugurating Banas Dairy’s new Bio-CNG and organic fertiliser plant and laying the foundation stone for a 150-tonne milk powder manufacturing facility.

Shah said the success of Banas Dairy was rooted in a cooperative tradition started by Galbabhai Nanjibhai Patel, which has grown into a ₹24,000-crore enterprise built by the collective efforts of farmers and women of Banaskantha district. He described the dairy as Asia’s largest milk-producing cooperative and said it demonstrated how an institution set up in 1960 by eight small village societies could transform the economy of an entire region.

Highlighting the role of women, Shah said the system of directly depositing weekly milk payments into bank accounts had ensured transparency and given women a central place in the rural economy. According to him, the women of Banaskantha have created a global example of empowerment without slogans or protests, purely through participation, transparency, and economic contribution.

Announcing a major policy shift, Shah said the government would now move towards a circular economy in the dairy sector. Under this model, dairy farmers would not only earn income from milk but also receive a share of the profits generated from biogas and organic fertiliser produced from cattle dung. He said this would create new income streams and significantly improve rural livelihoods.

Shah said a concrete national plan for implementing this circular dairy economy would emerge from a meeting of Members of Parliament in Banaskantha later in the day. He also announced that around 250 chairpersons and managing directors of dairy cooperatives from across India would visit Banaskantha in January to study and replicate the cooperative model at Banas Dairy.

Reflecting on the region’s past, Shah said Banaskantha had once been known for migration and distress, with farmers forced to work as labourers because of frequent droughts. He credited the Sujalam-Sufalam Yojana and the diversion of surplus water from the Narmada and Mahi rivers, initiated under Prime Minister Narendra Modi, for transforming the district’s agricultural and economic base. He said farmers who once grew a single crop now harvest three crops a year.

Shah also paid tribute to Dr B.R. Ambedkar on his death anniversary and noted that a padyatra marking the 150th birth anniversary of Sardar Vallabhbhai Patel had concluded on the same day. He said Patel was the true inspiration behind India’s cooperative movement and that the spirit of cooperation had taken deep root in Gujarat because of his legacy.

He said that apart from traditional products such as milk, curd, and paneer, there are several high-value dairy products that have strong global demand but are not yet widely manufactured in India. By focusing on such products, Shah said, Indian dairy farmers could earn additional income and India could strengthen its position in global dairy markets.

Describing Banas Dairy’s new facilities as a national template, Shah said the Bio-CNG, milk powder, protein, and fully automated paneer plants should inspire similar infrastructure across the country. He stressed that “not a gram of dung should go to waste” and said biogas, bio-CNG, electricity, and organic manure must be developed as new revenue sources for livestock farmers.

He said cooperative dairies across India would now begin producing their own cattle and animal feed instead of buying it from the open market, ensuring that the profits from feed production also flow directly to farmers. Shah said the Centre had already arranged the technology and financial support needed for this transition.

The minister said the Union government has created three national-level cooperatives for seeds, organic products, and agricultural exports, along with three new multi-state cooperatives for the dairy sector. These institutions will cover activities ranging from cheese and protein production to dairy whitener, honey, edible oil packaging, cold storage, potato processing, seed manufacturing, and animal feed. The aim, he said, is to ensure that the profits from these value-added activities ultimately reach livestock farmers.

He also said that village milk cooperatives have been equipped with micro-ATMs, which have simplified financial operations and even helped in handling processes such as the storage and use of frozen semen. Over time, these micro-ATMs will also help provide broader financial services to rural communities.

Looking ahead, Shah said the next phase of India’s dairy growth, described as White Revolution 2.0, would be driven by national programmes such as the National Gokul Mission, the Animal Husbandry Infrastructure Development Fund, the restructured National Dairy Plan, and the National Animal Disease Control Programme. He reiterated that the Banaskantha cooperative model would now be expanded across India to strengthen the incomes of millions of livestock farmers and make the circular dairy economy a nationwide reality.