Union Home and Cooperation Minister Amit Shah has reinforced the strategic imperative for Indian cooperatives to expand into high-value dairy categories, clean energy, and integrated circular-economy models. His remarks came during the inauguration of Banas Dairy’s newly built Bio-CNG and fertiliser plant in Sanadar, located in Gujarat’s Vav–Tharad district. Shah also laid the foundation stone for a 150-tonne milk powder plant, signalling the cooperative’s continued infrastructure expansion.
The event was attended by Gujarat Assembly Speaker Shankar Chaudhary, Union Ministers of State for Cooperation Krishan Pal Gurjar and Murlidhar Mohol, Cooperation Secretary Dr Ashish Kumar Bhutani, and other senior dignitaries—underscoring the national relevance of Banas Dairy’s cooperative model.
Cooperative-Led Rural Transformation
Shah emphasised that the Ministry of Cooperation aims to transform rural economies, and dairy remains the backbone of this effort. By leveraging circular systems where biogas, bio-CNG, organic fertiliser, animal feed, and value-added dairy products coexist, India’s cooperatives can significantly elevate farmers’ incomes. According to Shah, Banas Dairy’s integrated model could raise cattle rearers’ earnings by 20% in the next five years, reflecting the economic potential of renewable energy adoption and diversified value chains.
The Banas Model: A National Benchmark
The Home Minister described Banas Dairy as an “inspiration for India and the world,” highlighting its ₹24,000-crore turnover, achieved through farmer-led governance and extensive participation of women dairy contributors. He noted that chairpersons and managing directors from 250 dairies across India will visit Banaskantha in January 2026 to study this cooperative blueprint firsthand.
Shah underscored the institution’s origins, crediting founder Galbabhai Nanjibhai Patel for establishing a people-centric cooperative ethos:
“We may have little money, but we have many people.”
This ideology, he said, has grown into “a giant banyan tree,” shaping cooperative reforms nationwide.
Women at the Heart of Dairy Prosperity
Reiterating the transformative role of women, Shah highlighted that milk payments are routed directly to women producers, ensuring transparency and strengthening their financial autonomy. He called this a global example of women-led rural empowerment through cooperatives.
Water Security as the Foundation for Growth
Reflecting on Banaskantha’s past, Shah recalled the severe drought years of 1985–87 when farmers were constrained to a single crop annually. Today, due to improved water infrastructure driven by Prime Minister Narendra Modi’s Sujalam–Sufalam and river-linking initiatives, farmers now grow three crops per year, reshaping the region’s socio-economic profile. Two universities have been commissioned to document this transformation, making it a model for sustainable water management in arid regions.
The Push Toward Bio-CNG and Feed Self-Sufficiency
Shah urged dairy cooperatives across the country to enter biogas and bio-CNG production, citing the strong policy ecosystem created by the Government of India for technology and finance support. He also encouraged cooperatives to produce their own animal feed, reducing dependence on volatile feed markets and improving cost efficiencies.
Strengthening India’s Dairy Future
With the inauguration of the Bio-CNG and fertiliser plant and the launch of the powder plant project, Banas Dairy continues to consolidate its position as Asia’s largest milk-producing cooperative. These investments not only improve processing capability but also embed clean-energy solutions and value-added product lines into its long-term strategy.
The developments mark a significant milestone for India’s cooperative dairy landscape one where sustainability, technology adoption, and high-value dairy innovation will define future growth.