What Led to the Violence Outside Sabar Dairy in Gujarat?

Synopsis
Key Takeaways
- The protest was sparked by demands for a 25% increase in milk prices.
- Violence erupted when protestors clashed with police.
- Local MLA joined the farmers to support their cause.
- Incentives for farmers have decreased significantly this year.
- Sabar Dairy is a key player in Gujarat’s dairy industry.
Ahmedabad, July 14 (NationPress) Friction escalated in Gujarat’s Sabarkantha as a crowd of dairy farmers and cattle rearers assembled outside Sabar Dairy on Monday, demanding a 25% increase in milk procurement prices.
The demonstration began peacefully but soon turned aggressive when protestors breached the premises, causing damage to property, dismantling metal barriers, vandalizing CCTV cameras, and throwing stones.
At least three individuals sustained injuries during the turmoil, leading law enforcement to deploy tear gas and implement baton charges to regain control. The protest spilled over onto the Himmatnagar-Talod highway, causing significant traffic disruptions for several hours. In response, a substantial police presence was established around the dairy facility to avert further unrest.
Adding political significance to the farmers’ cause, local MLA Dhavalsinh Zala stood in solidarity with the protestors, accusing the dairy management of stifling legitimate demands through coercive tactics.
Participants in the protest alleged that private security personnel were enlisted to suppress dissent instead of addressing their concerns.
The root of the unrest lies in a significant reduction in incentive payouts. Farmers argue that while Sabar Dairy allocated Rs 602 crore in bonuses the previous year, resulting in a 17% increase in milk prices, this year's allocation has dropped to Rs 500 crore, yielding only a 9.75% increase.
With rising operational costs, farmers contend that this year’s incentives do not cover their labor and input expenses, compelling them to take to the streets.
The Sabarkantha District Co‑operative Milk Producers’ Union Ltd (Sabar Dairy) is a key player in Gujarat’s GCMMF (Amul) network, established in 1964 in Himmatnagar.
In the last fiscal year (2023–24), Sabar Dairy reported an impressive turnover exceeding Rs 8,939 crore (approximately USD 1.1 billion), reinforcing its status among Gujarat’s billion-dollar dairy cooperatives.
In FY22, the union's total operating income was reported at Rs 6,805 crore, with around 52% derived from packaged and raw milk sales, alongside milk powder (~17%) and cattle feed (~13%).
The union sources milk from approximately 3.85 lakh farmers through a network of 2,000 village co-ops, extending its procurement into neighboring states as well. Its market presence spans Gujarat and beyond, bolstered by a significant plant in Rohtak, Haryana, providing fluid milk, value-added dairy products, cattle feed, and animal nutrition solutions.