A protest by cattle rearers at Sabar Dairy, Sabarkantha district in Gujarat, demanding a 20–25% hike in milk procurement prices, escalated sharply on July 14, 2025. Over 11 AM, farmers—accompanied by MLA Dhavalsinh Zala—surrounded the dairy’s main gate. When police attempted to control the gathering, stone-throwing erupted, resulting in three policemen injured. Law enforcement retaliated with tear gas and baton charges, arresting approximately 40 protestors .

From a dairy trade lens, the unrest signals deep discontent among milk producers over stagnant or insufficient procurement rates. Such protests exert pressure on dairy cooperatives and private processors to reassess their pricing structures. The deployment of tear gas and mass arrests suggest potential supply disruptions, which could interrupt daily milk collection and strain fluid milk supply chains to processing units.

Continuous agitation threatens to impact Gujarat’s dairy output—currently a major contributor to both domestic consumption and exports. Prolonged supply-side resistance could lead to spot price volatility, affect contract fulfillment, and erode consumer confidence in cooperative stability. Industry insiders note that if procurement prices are raised, downstream costs (e.g. fluid milk, cheese) might increase, pressuring margins unless absorbed or passed on.

Industry Insight:

Standoff demonstrates rising farmer assertiveness amid price pressures—dairy entities must strengthen communication, establish responsive pricing mechanisms, and preempt unrest to secure supply continuity and investor confidence.

Source : Dairynews7x7 July 14th 2025

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