From farm to market: How North Gujarat's Mehsana, Sabarkantha and Banaskantha cooperatives are powering dairy value-chain growth

Aug 21, 2025

Gandhinagar (Gujarat) [India], August 21 : The dairy sector in North Gujarat is witnessing a remarkable transformation as Banaskantha, Mehsana, and Sabarkantha dairy cooperatives scale up their processing capacity and innovation. North Gujarat is a robust economy of rural livelihoods and development. The dairy cooperatives such as Banas Dairy (Banaskantha), Dudhsagar Dairy (Mehsana), and Sabar Dairy (Sabarkantha) have emerged as national and international leaders in milk processing, cold-chain infrastructure, and value-added dairy products exports from North Gujarat, the Chief Minister's office said in a press release.
These cooperatives operate under the umbrella of the Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets products under the renowned brand 'Amul'.
Banas Dairy, one of Asia's Largest Dairy Cooperatives, founded in 1969, is headquartered in Palanpur, Banaskantha and generated a turnover of more than INR 21,200 crore in FY 2024-25. Banas Dairy's 20 manufacturing units are spread across Gujarat, Uttar Pradesh, Rajasthan, Haryana, Uttarakhand, Bihar, Jharkhand, Odisha and Andhra Pradesh. It is successfully processing 10 million litres of milk daily.
With over 1,600 milk societies and 4 lakh farmers engaged, Banas Dairy plays a significant role in rural development. The product portfolio has expanded from traditional dairy items to honey and edible oils.
The successful collaboration between Suzuki Motor Corporation and the National Dairy Development Board (NDDB) for a biogas plant signals a shift towards sustainability and growth. This diversification, paired with robust processing and logistics infrastructure, makes Banas Dairy a model for export-oriented cooperative growth.
The Mehsana District Co-operative Milk Producers' Union Ltd, widely known as Dudhsagar Dairy and established in 1960, has been pivotal in transforming Mehsana into a hub of dairy innovation and has generated a turnover of approx. INR 8,054 crore in FY 2024-25. From humble beginnings with 3,300 litres per day, Dudhsagar Dairy now collects over 34.88 lakh litres of milk daily.
Leveraging its deep-rooted cooperative network, the dairy manufactures a wide range of milk and milk products--catering to both domestic and international markets. The strong cold-chain and quality control systems have enabled consistent supply and safety, laying the foundation for global competitiveness.
The Sabarkantha District Co-operative Milk Producers' Union Ltd, also known as Sabar Dairy, has a daily milk handling capacity of 33.53 lakh litres and is considered one of India's largest milk handlers, with operations spread across several Indian states and an FY 2023-24 turnover of approximately. INR 8,939 crore, Sabar Dairy has built a strong reputation for quality dairy production, especially in milk, ghee, butter, and cheese. It has consistently invested in processing facilities and cold-chain logistics to ensure freshness and quality.
These three major cooperatives exemplify the "farm-to-market" strength of the North Gujarat dairy cooperative model.
Farmer empowerment: Fair pricing and year-round procurement support the livelihoods of dairy farmers of the region.
Infrastructure expansion: Investments in cold chains, biogas, and soil testing labs align with global best practices.
Export potential: With rising global demand for Indian dairy products, these cooperatives are well-positioned to scale exports.
As North Gujarat aspires to become a global dairy export powerhouse, the success of Banas, Dudhsagar and Sabar Dairies offers a scalable, sustainable blueprint driven by world-class infrastructure.
These developments exemplify Gujarat's globally renowned dairy industry as the state prepares to host the Vibrant Gujarat Regional Conferences (VGRC). The conferences will showcase Gujarat's dynamic growth story for the dairy sector.

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