Circular Economy Latest News
- The Union Home and Cooperation Minister, during an event at Sanadar village, Vav-Tharad district (Gujarat), highlighted the potential of a circular economy model in the dairy sector to raise farmers’ income by 20% in the next five years.
- The event marked the inauguration of Banas Dairy’s bio-CNG and fertiliser plant and the groundbreaking of its milk-powder plant.
- Banas Dairy—Asia’s largest dairy cooperative—serves as a national model under the vision of White Revolution 2.0.
Circular Economy (CE)
- Meaning: It is a system shifting from "take-make-dispose" to keeping resources in use longer via reuse, repair, refurbishing, and recycling, aiming to eliminate waste and regenerate nature.
- Key features:
- Closed-loop system: Designs out waste and pollution, keeps products and materials in use, and regenerates natural systems.
- Contrast to linear model: Moves away from consuming resources, making products, and discarding them.
- Key actions: Involves sharing, leasing, repairing, refurbishing, remanufacturing, and recycling.
- Initiatives in India: India promotes CE through policies like the-
- Vehicle Scrappage Policy,
- Mission LiFE for behavioural change,
- Promoting bio-CNG/fertilizer plants (like Banas Dairy's model), and
- Initiatives under Swachh Bharat, focusing on resource efficiency, waste-to-wealth, and sustainable consumption.
The Circular Economy Model in Dairy
- Towards a sustainable dairy economy:
- India’s dairy sector has historically focused on milk procurement and processing.
- The emphasis is now shifting to resource efficiency, waste-to-wealth, and diversification of dairy products.
- The circular economy model: It represents a major structural reform linked to income enhancement, rural livelihoods, climate action, and cooperative federalism.
- Waste-to-wealth approach:
- Example, from cattle dung to biogas (bio-CNG) and bio-fertiliser.
- It provides additional income streams to farmers, and reduces reliance on chemical fertilisers and fossil fuels, aiding energy security and soil health.
- Dairy product diversification:
- Global demand exists for several value-added dairy products not widely produced in India.
- Diversification into global dairy products, milk powder, nutraceuticals, and specialty cheeses can boost exports.
- It supports MSME growth, rural supply chains, and Make in India.
- Leather from naturally deceased cattle:
- Use of cattle hides from naturally deceased animals within a regulated, cooperative-based system.
- Envisaged as part of the circular model to prevent waste and generate farmer income.
Role of Banas Dairy as a National Model
- Asia’s largest dairy cooperative: With an annual turnover of ₹24,000 crore, it demonstrates integrated circular systems - bio-CNG plant, organic fertiliser production, milk-processing and powder plant expansion.
- Capacity building and knowledge sharing: MPs were invited to Banaskantha to study the circular model for national replication. The chairpersons/MDs of major cooperative dairies will visit Banas Dairy for model adoption.
Government Interventions and Institutional Support
- Strengthening the cooperative structure: Creation of three agriculture cooperatives and three dairy cooperatives by the Union Government. Policy push under Ministry of Cooperation.
- Financial and technological support: The Indian government has ensured a system where dairies receive -
- Affordable finance
- Advanced technology
- Regulatory and institutional backing
- Alignment with national initiatives: Supporting White Revolution 2.0, Doubling Farmers’ Income, Atmanirbhar Bharat, Circular Economy Mission, etc.
Women’s Role in the Dairy Sector
- Women dairy farmers in arid Gujarat have shown remarkable entrepreneurship.
- Their income is directly credited to bank accounts, reflecting -
- Financial inclusion
- Women-led development
- Demonstration effect for global NGOs advocating women empowerment
Challenges and Way Forward
- Technological readiness: Small dairies may lack access to biogas plants and modern processing facilities. Promoting scaling circular economy plants across all major cooperative dairies.
- Initial capital costs for waste-to-energy infrastructure: Dedicated funds for renewable energy and bio-fertiliser plants under NABARD and cooperative banks.
- Training and skilling requirements for rural dairy communities: Skill training for farmers in waste management, organic fertiliser use, and value addition.
- Market linkages and export standards for global dairy products: Promotion of niche/global dairy products for exports under APEDA.
- Logistics and cold chain gaps in remote areas: Strengthening women-led dairy cooperatives as part of Lakhpati Didi and SHG models. Improving cold chain infrastructure through PPPs and FPOs.
- Regulation of leather from natural death cattle: Ensure ethical and legal compliance.
Conclusion
- The circular economy model in the dairy sector marks a transformational shift under White Revolution 2.0, aligning sustainability with rural prosperity.
- As India aims to boost farmers’ income and position itself as a global dairy leader, Banas Dairy’s success illustrates the potential for scalable, inclusive, and environmentally sustainable growth in the dairy economy.
Source: TH
Circular Economy FAQs
Q1: What is the significance of adopting a circular economy model in India’s dairy sector?
Ans: It enables a waste-to-wealth approach by converting cattle dung into bio-CNG and bio-fertiliser.
Q2: How does Banas Dairy serve as a model for White Revolution 2.0?
Ans: Banas Dairy demonstrates an integrated circular economy system—bio-CNG, fertiliser production, and value-added dairy processing.
Q3: What is the role of cooperative institutions in enhancing dairy farmers’ income?
Ans: Strengthened cooperatives provide finance, technology, and market linkages enabling farmers to benefit from diversified income sources.
Q4: Why is diversification into global dairy products important for India’s dairy sector?
Ans: Diversification helps tap high-value global demand, boosting exports and creating additional revenue streams for farmers and cooperatives.
Q5: What is the contribution of women dairy farmers to the dairy sector’s transformation in arid regions of Gujarat?
Ans: Women dairy farmers have strengthened cooperatives through consistent participation and ensured financial inclusion.