Cooperative dairy model shows a decentralized rural economy

The milk model is praised to be a representation of the decentralized rural economy

Cooperative dairy model shows
India is the largest producer of milk across the globe (Image: Pexels)

According to Prime Minister Narendra Modi, small farmers get benefits from animal husbandry even in the most climatic adversities. 

The cooperative dairy model is an instance of a successfully decentral-based rural economy that is proved to be a wealth-creator for the community. Prime Minister launched several projects at Banaskantha in Gujarat by Banas Dairy. He stated that the cooperative dairy model could create wealth for the rural community. During his visit, he also addressed a massive gathering of women dairy farmers and several cooperative leaders. The PM also said that an incomparable quantum of milk is produced by India every year.

The milk production and Banas Dairy

India is the largest producer of milk across the globe and makes around Rs. 8.5 lakh crore worth of milk yearly. This is valued higher than the worth of both paddy and wheat grown in India. The milk model is praised to be a representation of the decentralized rural economy.

The Banaskantha District Cooperative Milk Producers’ Union (Banas Dairy) also claims expertise in several other areas apart from dairy processing and milk production. According to Modi, the dairy cooperative successfully ventured into several areas like animal husbandry, potato processing, honey production, manure management, children’s education, and energy centers, and has also set up a medical college in the area amidst the pandemic crisis.

The benefits of small farmers

Small farmers benefit the most from the dairy cooperatives. Farmers having small lands of 2-3 bigha often encounter uncertain water shortage situations and monsoon woes. In such situations, animal husbandry can enable small farmers to thrive and bring food to their family’s plat.

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One of the 18 cooperative dairy members of GCMMF (Gujarat Cooperative Milk Marketing Federation) also has reached into states such as Haryana, Uttar Pradesh, Jharkhand, Rajasthan, Odisha, and Andhra Pradesh.

On the second day of Narendra Modi’s Gujarat tour, he dedicated Banas Dairy’s new industrial complex and potato processing plant to the country in Banaskantha district at Diyodar.


More than 600 crore rupees have been invested in building the greenfield complex. Nearly processing of 30 lakh liters of milk every day will be enabled by the dairy complex, with a capacity of producing nearly 80 tons of butter, 1 lakh liters of ice cream, and 20 tons of khoya (condensed milk), and 6 tons of chocolate every day.

Apart from this, the Bio-CNG plant was inaugurated by Narendra Modi, and he also expanded Banas Dairy’s facilities for making whey powder and cheese products in Palanpur.

Banaskantha is a great place for potato cultivation. This offered a suitable proposition for the dairy firm to establish a potato processing plant for making items such as potato chips, fries, patties, aloo tikkis, etc. It targets to export these products to other nations.

According to the Prime Minister, the development initiatives at Banas Dairy are going to empower farmers and enhance the rural economy. he also laid the foundation stone for four ‘gobar gas’ plats of 100 tons capacity at Thawar, Radhanpur, Ratanpura-Bhildi, and Khimana.

The community radio station

Dudh Vani, a community radio station, has also been inaugurated by PM Modi. The radio station is dedicated to animal husbandry.  Dudh Vani is going to connect more than 5 lakh customers across the state. It is the 1st community radio station dedicated exclusively to cattle-breeders.

The Prime Minister said that dairy is rising as a medium for growth in the income of farmers compared to the traditional food grains, especially when the landholdings are small and the conditions are hard. 

The development initiatives are going to create a new economic force across the nation. The community radio and biogas plants will also empower the local farmers and boost the region’s local economy.


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