Amul’s decision to supply milk and curd through an e-commerce portal in Bengaluru has drawn strong opposition from Kannadigas, who see it as an attempt to trample on their iconic Nandini brand from Karnataka. , Photo Credit: Manjunath HS
the story So Far: A week since dairy behemoth Amul announced Originating in a Bengaluru market, the issue between two major milk cooperatives in the country has boiled over into a political tussle ahead of the May 10 Karnataka assembly elections.
Soon after the announcement, local people, pro-Kannada organizations and opposition parties took to the streets and social media To push back against the Karnataka Milk Federation (KMF), its dairy brand Nandini and what he considered a “threat” milk farmer, The Congress and JD(S) accused the Basavaraj Bommai-led BJP government of privatizing the milk sector and “wiping out” the domestic product.
Caught in a political storm, on 10 April Jayan Mehta, the managing director (MD) of the Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul, issued a statement. denial of charges That a dairy giant was coming to Karnataka to compete with Nandini. However, the uproar has refused to subside in the poll-bound state, where feelings of regional pride are running high.
What sparked the controversy?
On 5 April, Amul, the country’s largest dairy player, announced its decision to supply milk and curd through e-commerce portals in Bengaluru. It faced stiff resistance from Kannadigas, who saw it as an attempt to trample Karnataka’s own iconic Nandini milk. Netizens took to social media with #gobackAMUL to express their protest. Amul has not announced the launch date yet.
What was Amul’s response?
In its clarification, the GCMMF argued that Amul had decided to launch its fresh milk and curd only through e-commerce channels for a niche market and not through a mass-market distribution network. Amul MD Mr. Mehta also said that there would be no competition as Amul’s toned milk was priced at ₹54 per litre, while Nandini was retailing its toned milk at a much cheaper price of ₹39 per litre.
Why has it turned into a turf war?
KMF is the second largest milk cooperative in the country after Amul. While Gujarat-based Amul and Karnataka-based KMF compete in neutral territories such as the markets of Mumbai, Nagpur, Goa, Hyderabad and Chennai, they have not yet clashed on home turf. However, with KMF being a new entrant in the e-commerce space, Amul’s online presence in the state could create unhealthy competition despite the price difference, the federation has said.
Karnataka is also a milk-surplus market, meaning it not only meets the state’s needs but also exports the surplus to other states. With KMF expanding its market through competitive pricing, Nandini products are today available in Mumbai, Pune, Hyderabad, Chennai, Kerala and Goa. Therefore, KMF is Planning to write to National Dairy Development BoardIt sought a direction to Amul not to venture into the Bengaluru market – which may harm both their business interests and inadvertently those of private players – and instead focus on milk deficient states.
What prompted the political upheaval?
It did not take long for the Amul vs KMF controversy to become a political weapon in the poll-bound Karnataka. Following Amul’s announcement, the opposition Congress, JD(S) and other sections of Kannadigas expressed apprehensions that Amul would eat into Nandini’s market and pose a threat to its business in the state.
While BJP leaders rejected the merger claims, the Congress and JD(S) accused the ruling party of trying to weaken the state’s cooperative milk federation, which currently supports 28 lakh farmers and 2.5 lakh employees. Is.
While Chief Minister Basavaraj Bommai accused the opposition of politicizing the issue and “misleading” farmers and people with misinformation, other BJP leaders also cited the anti-cow slaughter act as proof of their commitment towards protecting the state. Scrambling to defend the government by citing. dairy industry.
This line has become more important after the Hindi imposition controversy Labeling of curd as ‘dahi’ on KMF’s Nandini pouch Along with the Union Home and Cooperation Minister Amit Shah’s suggestion in Mandya last December With regard to the “coming together” of Amul and Nandini, which was received severe reaction, In light of this, former chief minister and JD(S) leader HD Kumaraswamy termed the BJP’s recent move as a “third conspiracy” to destabilize the state’s dairy cooperative.
The opposition has also considered the entry and merger of Amul as Gujarat’s attack on Karnataka. “While Nandini products have seen a decline since Mr. Amit Shah talked about the merger, Amul sales have increased. Milk procurement has declined in Karnataka since the BJP came to power, and dairy farmers are in distress,” alleged Congress leader Siddaramaiah.
Hoteliers endorse brand Nandini
Hoteliers in Bengaluru also came out in support of KMF and its Nandini brand. Bruhat Bengaluru Hoteliers’ Association (BBHA) president PC Rao pledged to support hoteliers in the city through the purchase and promotion of Nandini milk. “We should whole heartedly support KMF which buys milk from our farmers and is the pride of our state. The Nandini brand of milk is the backbone of great tasting coffee and tea in Bengaluru.