Banas Dairy, Asia’s largest milk producers’ cooperative based in Banaskantha, Gujarat, is charting a new course for India’s cooperative movement by expanding its expertise beyond dairy into high-quality potato seed production. This strategic diversification highlights a growing trend among cooperatives to explore integrated agricultural models that empower farmers and strengthen rural economies.
The initiative follows the Government of India’s broader vision of “Sahkar Se Samriddhi” (Prosperity through Cooperation), championed by the Ministry of Cooperation. Earlier this week, Banas Dairy signed a Memorandum of Understanding (MoU) with Bharatiya Beej Sahakari Samiti Ltd. (BBSSL) to create a structured, cooperative-led value chain for disease-free potato seed production. The agreement was formalized in New Delhi in the presence of Dr. Ashish Kumar Bhutani, Secretary, Ministry of Cooperation.
The ceremony was also attended by Shri Raman Kumar, Joint Secretary, Ministry of Cooperation; Shri Yogendra Kumar, Chairman, BBSSL; Shri Sangram Chaudhary, Chairman, Banas Dairy; Shri Chetan Joshi, Managing Director, BBSSL, along with other senior officials from both organizations.
A New Chapter in Cooperative Diversification
Founded in 1969 under the visionary leadership of Galbabhai Nanjibhai Patel, Banas Dairy has long symbolized collective success in India’s dairy sector. Its transition into seed production marks a forward-looking approach to tackling regional agricultural challenges — particularly in Banaskantha, often called the “Potato Bowl of India.” The district contributes nearly half of Gujarat’s total potato output, producing 18.7 lakh tonnes across 61,000 hectares in 2024–25, with one of the country’s highest productivity rates.
By entering potato seed production, Banas Dairy aims to address chronic issues faced by farmers: lack of quality seed, inconsistent market prices, and high input costs. The cooperative’s well-established infrastructure and farmer base offer an ideal foundation for this transition, potentially turning Banaskantha into a model for agri-cooperative innovation.
Technology-Driven Seed Production
Under the MoU, Banas Dairy will leverage its advanced tissue culture and aeroponics facilities — technologies typically used in precision agriculture. Aeroponic cultivation, a soilless method where plant roots are misted with nutrient solutions, enables the production of disease-free, high-yield seed potatoes. These scientific techniques are expected to significantly improve the quality and availability of seeds for small and marginal farmers.
Additionally, the partnership emphasizes farmer training in modern cultivation methods, the introduction of contract farming for price stability, and direct market linkages that eliminate intermediaries. Together, these steps are designed to enhance profitability, transparency, and long-term sustainability for rural producers.
Building a Self-Reliant Agri-Economy
Beyond its technical scope, the collaboration aligns with the government’s emphasis on integrating cooperatives into India’s broader self-reliance mission. By extending cooperative management from milk to potatoes — including processing and marketing — Banas Dairy is effectively establishing a “farm-to-market” ecosystem owned and managed by farmers themselves.
The economic benefits are multifold: lower production costs through shared resources, assured market access, and a stable income base that reduces vulnerability to market fluctuations. The model also supports rural employment generation and contributes to food security through localized, high-quality seed production.
A Template for the Future
Industry experts view this collaboration as a pivotal experiment in cooperative diversification — one that could be replicated in other agri-value chains such as pulses, oilseeds, and horticulture. It showcases how cooperatives can evolve into technology-driven agribusinesses while retaining their community-centered ethos.
As Banas Dairy and BBSSL operationalize their partnership, their success could redefine how India’s cooperative institutions contribute to agricultural modernization and rural resilience. The initiative underscores that the future of cooperative growth lies not only in scaling existing models but in innovating new ones that integrate science, sustainability, and shared prosperity.
