Gujarat Dairy Scandal Surfaces Amid BJP Infighting
A politically charged conflict within Gujarat’s BJP has unveiled alarming revelations of illegal milk operations and entrenched corruption across several cooperative dairies. The latest scandal involves Sumul Dairy in Surat, where top executives are accused of sourcing milk illegally from Maharashtra through unregistered chilling plants, funneling it into the local supply chain. Alleged misconduct includes a ₹3.25 crore fine imposed on 25 cooperative societies for the import scheme. The crisis isn’t limited to Sumul. Baroda Dairy faced allegations of fraudulent milk deliveries recorded under deceased members, prompting internal probes and the MD’s resignation. At Dudhsagar Dairy in Mehsana, a boardroom clash exposed expired powder stockpiling and political power struggles. In response, the state BJP has ordered audits of errant societies, legal action against non-compliant collection centers, and summoned implicated leaders for accountability. The fallout highlights deep-rooted institutional rot within Gujarat’s cooperative dairy sector—long considered a beacon of rural prosperity. The state government’s swift response reflects growing public scrutiny over milk quality, farmer welfare, and governance norms. Industry Insight: Source : Dairynews7x7 July 3rd 2025
These developments underscore systemic vulnerabilities in India’s cooperative dairy model. For investors and enterprise buyers, this signals an urgent need to evaluate partner compliance practices, supply chain transparency, and governance structures. Rigorous audit protocols and traceability systems are essential to navigate a sector increasingly under administrative and public scrutiny.