The story so far: A week since dairy behemoth Amul announced its foray into the Bengaluru market, the issue between two major milk cooperatives in the country has boiled over into a political slugfest ahead of the Karnataka Assembly Elections, scheduled for May 10.
Soon after the announcement, locals, pro-Kannada organisations and Opposition parties took to the streets and social media to push back against what they deemed a “threat” to Karnataka Milk Federation (KMF), its dairy brand Nandini and milk farmers. The Congress and the JD(S) accused the Basavaraj Bommai-led BJP government of attempting to privatise milk sector and “finish off” a home-grown product.
Caught in a political storm, on April 10, Jayen Mehta, managing director (MD) of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul, issued a statement refuting allegations that the dairy giant was coming to Karnataka to compete with Nandini. The uproar, however, has refused to simmer down in the poll-bound State where sentiments of regional pride are running high.
What stoked the controversy?
On April 5, Amul, the country’s largest dairy player, announced its decision to supply milk and curd through e-commerce portals in Bengaluru. This was met with stiff resistance from Kannadigas, who saw it as an attempt to trample upon Karnataka’s own iconic Nandini milk. Netizens took to social media with #gobackAMUL to express their protest. Amul is yet to announce the launch date.
What was Amul’s response?
In its clarification, GCMMF contended that Amul had decided to launch its fresh milk and curd only for a niche market through e-commerce channels and not through the mass market distribution network. Amul’s MD Mr. Mehta also said there would be no competition since 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 this turned into a turf war?
The KMF is the second largest milk cooperative in the country after Amul. While the Gujarat-based Amul and and Karnataka-based KMF compete in neutral regions like Mumbai, Nagpur, Goa, Hyderabad, and Chennai markets, they have so far not clashed on the home turfs. However, with KMF being a new entrant into the e-commerce space, Amul’s online presence in the State could create unhealthy competition despite the pricing difference, the federation has said.
Karnataka is also a milk-excess market, which means it not only meets the needs of the State but also exports the surplus to other states. With the KMF expanding its market through competitive pricing, Nandini products are today available in Mumbai, Pune, Hyderabad, Chennai, Kerala, and Goa. Therefore, the KMF is planning to write to the National Dairy Development Board, requesting it to direct Amul not to venture into the Bengaluru market — which could hurt both their business interests and inadvertently favour private players — and instead concentrate on milk-deficient States.
What prompted the political uproar?
It did not take long for the Amul vs KMF row to turn into a political tool in poll-bound Karnataka. After Amul’s announcement, the Opposition Congress, the JD(S) and other sections of Kannadigas expressed fears that Amul would eat into the market of Nandini and pose a threat to its business in the State.
While BJP leaders shot down claims of merger, the Congress and JD(S) accused the ruling party of attempting to weaken the State’s cooperative milk federation, which currently supports 28 lakh farmers and 2.5 lakh employees.
While Chief Minister Basavaraj Bommai accused the Opposition of politicising the issue and “misleading” the farmers and people with misinformation, other BJP leaders also scrambled to defend the government by citing the Anti-cow Slaughter Act as a proof of its commitment towards protecting the State’s dairy industry.
The row gains greater significance coming close on the heels of the Hindi imposition controversy over labelling curd as ‘dahi’ on KMF’s Nandini sachets as well as Union Minister for Home and Cooperation Amit Shah’s suggestion in Mandya last December regarding the “coming together” of Amul and Nandini, which had received severe backlash. In light of this, former chief minister and JD(S) leader H.D. Kumaraswamy termed the recent move the BJP’s “third conspiracy” to destabilise the State’s dairy cooperative.
The Opposition has also construed Amul’s entry and talks of merger into an attack of Gujarat on Karnataka. “While the Nandini products have seen a decline since Mr. Amit Shah spoke of merger, Amul sales have increased. The milk procurement has declined in Karnataka since BJP came to power, and dairy farmers are in distress,” Congress leader Siddaramaiah has alleged.
Hoteliers back brand Nandini
The hoteliers of Bengaluru also came out in support of KMF and its Nandini brand. P.C. Rao, president of the Bruhat Bengaluru Hoteliers’ Association (BBHA), pledged the support of hoteliers in the city through procurement and promotion of Nandini milk. “We should wholeheartedly support the KMF that procures milk from our farmers and is the pride of our State. Nandini brand of milk is the backbone of great tasting coffee and tea in Bengaluru,” he had said.
- Amul, the country’s largest dairy player, announced its decision to supply milk and curd through e-commerce portals in Bengaluru on April 5. This was met with stiff resistance from Kannadigas, who saw it as an attempt to trample upon Karnataka’s own iconic Nandini milk.
- The Karnataka Milk Federation is the second largest milk cooperative in the country after Amul. While the Gujarat-based Amul and and Karnataka-based KMF compete in neutral regions like Mumbai, Nagpur, Goa, Hyderabad, and Chennai markets, they have so far not clashed on the home turfs.
- It did not take long for the Amul vs KMF row to turn into a political tool in poll-bound Karnataka. After Amul’s announcement, the Opposition Congress, the JD(S) and other sections of Kannadigas expressed fears that Amul would eat into the market of Nandini and pose a threat to its business in the State.
