North Gujarat's spice, dairy sectors eye boost from regional summit

At a time when the 50 per cent tariffs imposed by US President Donald Trump have put Gujarat’s diamond, textile, and ceramic sectors under pressure, the spice and dairy sectors of the state are hoping for a significant boost from the upcoming Vibrant Gujarat Regional Conferences (VGRCs).

The four regional summits, an extension of the Vibrant Gujarat Global Summit (VGSS), are to be held over eight months, from October 2025 to June 2026. These are region-specific events, with the first one centred around North Gujarat, the other regions being Kutch and Saurashtra, South Gujarat, and Central Gujarat.

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The first leg takes off in Mehsana district on October 9-10, covering the districts of Aravalli, Banaskantha, Mehsana, Patan, and Sabarkantha. Known for its agriculture, dairy, food processing, and automobile industries in the Mandal-Becharaji Special Investment Region (SIR), North Gujarat will see the representatives of the spice and dairy sectors participate in such a summit for the first time.

Struggling spice sector

“Gujarat is the world’s leading exporter of cumin and coriander, with nearly 80 per cent of India’s production coming from Unjha in Mehsana district. Our major markets are the US, China, the UAE, and Bangladesh,” Arvind Patel, president of the Shri Unjha Vyapari Mahamandal, a local spice traders’ body, told The Federal.

“Orders from Bangladesh had already been declining since last year due to internal conflict. However, this year the situation is worse, as the US, our biggest market after China, has imposed a hefty tariff on cumin, coriander, and their derivatives. So far, we’ve received barely 15 per cent of the orders we earlier got from the US.”

“Adding to our troubles, cumin production has been higher this year. In 2025, the Unjha Agriculture Market Produce Committee (APMC) received 54,410 tonnes of cumin, up from 46,313 tonnes last year. But with shrinking markets, prices have dropped. Cumin is selling at Rs 16,500 per quintal as of September 3, compared to last year’s average of Rs 18,375. Coriander too has fallen to Rs 6,750 per quintal from an average of Rs 7,825 last year,” added Patel.

With the VGSR’s ‘One District, One Product’ (ODOP) initiative, akin to the Centre's, spice producers in Mehsana are hopeful for a much-needed boost.

Aiming to tap new market

“Chief Minister Bhupendra Patel has announced that China and Japan will participate in the summit in Mehsana. We hope to tap into Japan as a new market and secure more orders from China," said Bhartikaben Patel, Secretary of APMC Unjha.

"This is the first time spice producers from Unjha will be directly represented at a global business summit, instead of being clubbed under the state agriculture department. The event will put Unjha’s spice industry in the global spotlight. Our sector is self-sufficient, as cumin and coriander are grown, processed into by-products and powder, packaged, and exported, all from the same town,” she added.

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“Cumin prices have been falling since June, with no recovery in demand. If the crop doesn’t sell this season, losses will be severe,” said Dineshbhai Jhala, a cumin farmer from Unjha. He added that most farmers are holding back their stock as the Unjha APMC has advised waiting until October, hoping the business summit will attract new buyers.

“If things don’t improve after October, we may shift to vegetables next season, which at least have a local market,” he added.

Dairy sector eyes revival

Like spice producers, North Gujarat’s dairy sector is also pinning hopes on the VGRS in Mehsana. The region is home to three major cooperatives – Banas Dairy (Banaskantha), Dudhsagar Dairy (Mehsana) and Sabar Dairy (Sabarkantha).

“Every household in Banaskantha depends on milk. Banas Dairy, one of Asia’s largest cooperatives, produces about 10 million litres daily. Rising fodder costs have squeezed profits, prompting farmers to demand higher procurement prices. While we raised prices in July 2022 and paid Rs 1,132 crore in arrears for milk bought earlier that year, such payouts aren’t sustainable annually. That’s why we’re exploring subsidiary ventures like biogas plants. At the VGRS, we hope to tie up with companies for such initiatives,” Bhavabhai Rabari, Vice Chairman of Banas Dairy, told The Federal.

The dairy enterprises are looking forward to partnerships similar to Maruti Suzuki’s collaboration with NDDB for biogas plants, he added.

Price hikes

In July, Sabar Dairy raised buffalo milk prices from Rs 810-850 to Rs 960-995 per kg fat, and after sustained protests by Sabarkantha farmers, also increased cow milk prices by Rs 5 per kg fat. “This still isn’t enough to sustain us. However, the management has assured another hike in cow milk prices soon,” said Ragji Patel, a dairy farmer from Himmatnagar.

“We are still recovering from the losses incurred during the lockdown. Sales of milk and milk products remain below pre-pandemic levels. The only way to pay better prices for milk procurement is by finding new markets or diversifying into subsidiary businesses,” said Subhashchandra Patel, Managing Director of Sabar Dairy.

“Through the VGRC, we hope to attract investment for cold chains, biogas, and soil testing labs. With rising global demand for Indian dairy products, we are also keen to explore new export tie-ups,” he added.

Replicating success in regions

“With the regional Vibrant Gujarat Summits, we are launching a new experiment to replicate the success of VGGS at the regional level. Each summit will focus on strengthening local industries. In North Gujarat, the spotlight will be on the auto hub and pharmaceuticals. Mehsana and Patan are key centres for devices and medical equipment, contributing 12 per cent of Gujarat’s total pharma output. In the auto sector, the Mandal–Bechraji SIR will be a major highlight. The summit will also showcase the region’s tourism potential. On the second day, participants will visit the Vadnagar Archaeological Museum,” said P Swaroop, Industries Commissioner of Gujarat.

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According to the Socio-Economic Report of Gujarat 2024–25, published by the Directorate of Economics and Statistics in February 2025, the three-day VGGS in January 2024 cost Rs 114.53 crore to organise. The summit drew 98,970 companies across 26 sectors, resulting in MoUs for 41,299 projects worth Rs 26.33 lakh crore. Of this, MoUs worth Rs 2,359 crore were signed in the agro sector.

However, by the end of 2024, MoUs for 5,008 projects had been withdrawn. In the agro sector, only one project has materialised so far – a Rs 500 crore food processing plant by Iscon Balaji at Himmatnagar in Sabarkantha district. The remaining projects worth Rs 1,859 crore, including a promised Rs 100 crore spice packaging unit by Paras Spices at Unjha, are yet to take off.