Circular Economy in India’s Dairy Sector
Why in news?
- India's dairy sector is adopting a circular economy model to transform waste like cattle dung into biogas (bio-CNG), organic fertilizers, and other value-added products, boosting farmer incomes by an estimated 20% over five years without increasing milk production.
- This shift aligns with White Revolution 2.0, emphasizing resource efficiency, waste-to-wealth strategies, and diversification into products like milk powder, paneer, and nutraceuticals.
- Banas Dairy in Gujarat serves as Asia's largest cooperative exemplar, with its ₹24,000 crore turnover and integrated systems for bio-CNG production and fertilizer generation.​
Benefits and Impacts
- Farmers gain additional income from by-products, reducing reliance on chemical fertilizers and fossil fuels while enhancing soil health and energy security.​
- Women-led cooperatives in arid Gujarat demonstrate entrepreneurship, with direct bank transfers promoting financial inclusion.​
- Environmental gains include lower methane emissions and carbon footprint reduction through manure management.​
Government Support
- The Union Ministry of Cooperation provides finance, technology, and three new dairy cooperatives for activities like cheese, animal feed, and exports.
- Aligns with national goals like Doubling Farmers’ Income, Atmanirbhar Bharat, and Mission LiFE.
- Product diversification into nutraceuticals and specialty cheeses targets global markets.​
Challenges
- Small dairies face barriers like high initial costs for biogas infrastructure, limited technological access, and training needs for waste management.
- Logistics gaps in cold chains and regulatory issues for leather from naturally deceased cattle require public-private partnerships and skill programs.
- Scaling demands dedicated NABARD funds and market linkages for exports via APEDA.​
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