Dudhsagar Dairy’s ₹9,020-Crore Turnover, Yet Farmers Protest Over Milk Prices: Questions Raised from Mehsana to Dehgam

Dilip Patel

June 11, 2026 Ahmedabad

Dudhsagar Dairy (Mehsana District Co-operative Milk Producers’ Union Ltd.), one of India’s leading dairy cooperatives and the largest milk union in North Gujarat, recorded a turnover of approximately ₹9,020 crore in 2025-26. The dairy is linked to more than 470,000 milk-producing farmers and has a membership base exceeding one million.

Despite this growth, milk producers across Mehsana, Patan, Gandhinagar and nearby districts have staged protests over milk procurement prices, rising cattle-feed costs and the distribution of cooperative profits.

The developments have raised an important question: Why is dissatisfaction growing among farmers despite the dairy’s strong financial performance?

Expanding Dairy Empire

Dudhsagar Dairy remains one of the most influential cooperative institutions in North Gujarat.

Its average daily milk procurement increased from 3.488 million litres in 2024-25 to 3.634 million litres in 2025-26.

Apart from Mehsana, Patan and Gandhinagar, the dairy also procures milk from other states. Available information indicates that nearly one million kilograms of milk are procured daily from a network of around 500,000 farmers outside Gujarat.

More than 1,250 village milk cooperative societies are associated with the dairy.

Why Are Farmers Unhappy?

Milk producers argue that the costs of cattle feed, fodder, medicines, electricity, labour and diesel have risen sharply over the past few years, while procurement prices have not kept pace.

Farmers’ key concerns include:

• Milk prices not matching production costs.
• Continuous increases in cattle-feed prices.
• Rising fodder and green-feed expenses.
• Higher electricity and fuel costs.
• Demand for a larger share of cooperative profits.
• Comparisons with higher payouts offered by other dairy cooperatives.

Discontent at Harij

At a livestock producers’ convention held in Harij, Patan district, farmers openly demanded higher milk procurement prices.

Several participants expressed dissatisfaction with the dairy’s pricing policies, arguing that dairy farming is becoming increasingly difficult for small producers due to rising costs.

Milk-Dumping Protest in Dehgam

In Dehgam and other areas of Gandhinagar district, dairy farmers staged protests by pouring milk onto roads.

Protesters argued that while the dairy’s turnover and revenues continue to grow, producers are not receiving a proportionate share of the benefits.

The demonstrations intensified pressure on the dairy management to revise procurement prices.

Price Revision After Protests

Following the protests, Dudhsagar Dairy announced an increase in milk procurement prices.

The procurement rate was raised from ₹830 per kilogram of fat to ₹855 per kilogram of fat, representing an increase of ₹25.

In addition, the dairy announced extra payments linked to SNF (Solid Non-Fat) content for the first time.

Management stated that the decision would improve farmers’ incomes and encourage higher milk production.

Are Farmers Satisfied?

Despite the increase, not all producers are satisfied.

Several farmer leaders argue that cattle-feed and fodder costs have increased by 25–40 percent over the past two years, making the latest price revision insufficient.

They contend that procurement prices should more accurately reflect inflation and production expenses.

Comparison with Other Dairy Cooperatives

The debate has also been fueled by comparisons with other major dairy cooperatives in Gujarat.

• Amul Dairy reported a final payout of around ₹1,035 per kilogram of fat for 2025-26.
• Banas Dairy distributed nearly ₹2,910 crore in payments and bonuses to producers and cooperative societies.
• Sabar Dairy also witnessed farmer protests over bonus-related issues.

Against this backdrop, Dudhsagar Dairy farmers are demanding higher returns and additional bonus payments.

The Backbone of North Gujarat’s Rural Economy

Dudhsagar Dairy is more than a cooperative enterprise; it is a key pillar of North Gujarat’s rural economy.

Millions of rural residents in Mehsana, Patan and Gandhinagar depend directly or indirectly on dairy farming for their livelihoods.

An estimated 521,000 active milk producers are associated with the dairy network.

Available estimates suggest that between 400,000 and 500,000 milch animals contribute to the dairy’s supply chain, including both buffaloes and cows.

The Road Ahead

While Dudhsagar Dairy has attempted to address farmer concerns through price increases, the gap between production costs and procurement prices remains a contentious issue.

On one hand, the cooperative has achieved a turnover of ₹9,020 crore. On the other, producers continue to seek better prices, larger bonuses and a more equitable share of cooperative earnings.

For now, North Gujarat’s dairy economy remains robust. The larger question, however, is how much of that prosperity ultimately reaches the farmers who form the foundation of the cooperative system.