Circular economy to boost dairy farmers’ income by 20% in 5 years: Amit Shah

Union Home and Cooperation Minister Amit Shah on Saturday expressed confidence that the implementation of the circular economy model across the country will increase dairy farmers’ income by 20 per cent in the next five years. Shah was addressing cattle rearers associated with Banas Dairy at an event held at Sanadar village in Gujarat’s Vav-Tharad district to mark the inauguration of the dairy’s bio-CNG and fertiliser plant and ground-breaking of its milk powder plant.

He praised Banas Dairy’s management for successfully developing a model for a circular economy in the dairy sector, which includes generating extra income for farmers through various means, such as converting cattle dung into biogas and bio-fertiliser. Shah informed the audience that he has brought several members of Parliament to Banaskantha to understand the circular economy model of Banas Dairy.

“So far, our cooperative dairies have received huge success in procuring milk from farmers and giving back the income generated from selling milk products. Now, the time has come to focus on the circular economy. You will get your share from the income generated by the dairy by selling biogas and fertiliser produced from cattle dung procured from farmers,” he said. A concrete plan for the implementation of this circular economy model across the country will emerge from the meeting of MPs in Banaskantha in the evening, the minister said.

Shah also informed the gathering that chairpersons and managing directors of all the major cooperative dairies will visit Banas Dairy in January 2026 to understand more about the initiatives taken by the dairy, considered Asia’s largest dairy with a turnover of Rs 24,000 crore.

“Apart from the usual milk products like paneer and curd, there are many products that are in demand across the globe, but they are not produced in India. If we focus on those products, dairy farmers can earn extra income,” he said.

Shah said Prime Minister Narendra Modi has created a system wherein dairies will get the required finance and technology to adopt this circular economy model, which also includes leather production from the hide harvested from the cattle that died naturally. “Our government has created three cooperatives for the agriculture sector and three for the dairy sector. I want to assure you that the circular economy will increase dairy farmers’ income by 20 per cent in the next five years,” he said. Shah said his ministry and the Centre have done detailed planning for implementing the circular economy model in the dairy sector. He expressed confidence that targets set by PM Modi under the ‘White Revolution 2.0’ initiative will be achieved through collective efforts.

On the occasion, Shah praised women dairy farmers for their contribution and efforts in strengthening the sector in this arid region of Gujarat. “Women dairy farmers of this region sent a message to NGOs around the world that advocate for women’s empowerment. Without any agitation, you worked hard to create a system where your earnings are deposited directly into your bank account,” he noted.