"This is not the first time Amul has tried to enter the Karnataka market. We stopped them with mutual discussion," said a former KMF MD.
Amul's teaser on a market launch in Bengaluru for sale of milk and curd in retail
It looks like the mutual unwritten-unsigned agreement between strong and self-sufficient milk federations in the country — that one milk federation would not enter the market territory of another, or, simply put, not cause trouble for another’s business — is a thing of the past now.
The move by Amul Cooperative Society — the dairy giant from Anand in Gujarat — to venture into the Bengaluru retail market with its dairy products (milk and curd) has been met with flak and suspicion by farmers and residents of Karnataka.
Amul’s announcement comes at a time dairy farmers have been expressing concerns over the adverse impact the Karnataka Milk Federation (KMF) and its flagship brand Nandini — as well as farmers dependent on the cooperative — may face if richer and stronger brands like Amul are allowed to compete in the marketplace.
Union Home Minister and Minister for Cooperation Amit Shah calling for “cooperation” between Gujarat’s Amul and Karnataka’s Nandini had led to a flurry of angry reactions from farmers and Kannada rights activists alike.
Social media was abuzz recently with teasers and advertisements from Amul Cooperative Society’s Twitter handle.
In one such teaser, the dairy giant stated that Amul milk and curd would be available from Kengeri to Whitefield, wishing everyone a ‘Taaza’ (fresh) day!
A new wave of freshness with milk and curd is coming
to Bengaluru. More information coming soon. #LaunchAlert pic.twitter.com/q2SCGsmsFP— Amul.coop (@Amul_Coop) April 5, 2023
A couple of other teasers promised freshness “arriving soon” in Bengaluru, and even at “your doorstep”.
The #Amul family is bringing in some Taaza into #Bengaluru city. More updates coming in soon. #LaunchAlert pic.twitter.com/2ZjN0bKkdX
— Amul.coop (@Amul_Coop) April 5, 2023
#Amul is bringing to you new freshness in the form of milk and curd.
Available on quick commerce platforms, they can be ordered to your doorstep.#LaunchAlert pic.twitter.com/45Tkye6mJ7
— Amul.coop (@Amul_Coop) April 5, 2023
Many residents of Bengaluru expressed discontent online over Amul’s move to enter Karnataka, which has its own Karnataka Milk Federation (KMF) and its favourite brand Nandini for milk and curd.
One netizen posted: “So this story is coming true of Amul taking over brand Nandini of @kmfnandinimilk.. Already Milk n Curd of Nandini r in shortage in Bengaluru n Nandini Ghee is out of stock since last 2 months… [sic]”
So this story is coming true of Amul taking over brand Nandini of @kmfnandinimilk ..
Already Milk n Curd of Nandini r in shortage in Bengaluru n Nandini Ghee is out of stock since last 2 months…— Vimal Lakhotia 🇮🇳 (@vimallakhotia) April 6, 2023
Another one posted: #Amul can’t compete with #Nandini w.r.t to fresh milk, curd, icecreams & ghee in #Bangalore atleast. Nandini is way cheaper than Amul & #DMart gives good discount further on MRP. Plan it well before you plan to launch here. All the best 👍[sic].”
#Amul can't compete with #Nandini w.r.t to fresh milk , curd , icecreams & ghee in #Bangalore atleast . Nandini is way cheaper than Amul & #DMart gives good discount further on MRP . Plan it well before you plan to launch here . All the best 👍
— CuriousMind 🪩 (@kyuriousmynd) April 5, 2023
Another netizen posted: “No thanks we have our own ‘Nandhini’, you can move…(Amul). [sic]”
Karnataka Kisan Congress president Sachin Meega told South First that this was a disaster that was in the process of finishing off dairy farmers in Karnataka.
“Over the past three-four months, there has been a shortage of more than one lakh litres of milk on a daily basis. This is due to the Lumpy Skin Disease that is spreading among cows, many of which are dying and many others falling ill. This has affected milk procurement in the state,” he explained.
“A big federation like Amul entering the Karnataka market with retail milk and curd at this time will lead to the collapse of the KMF and its Nandini brand,” he added.
“When the Lumpy Skin Disease is gone, and when the milk production and procurement resumes and increases, this will affect the dairy farmers adversely, which will in turn lead to the KMF’s collapse,” Meega told South First.
He added that the dairy farmers used to get only ₹29-30 per litre of milk, depending on quality.
It has now come up to ₹31-33 with great difficulty, he noted.
“However, the expenditure calculated for each litre of milk by a dairy farmer would be anywhere between ₹40 and ₹45, as the price of fodder throughout Karnataka over the past couple of years has doubled and tripled,” said Sachin.
Sources from Karnataka’s Animal Husbandry Department told South First that the Lumpy Skin Disease affecting cows and oxen in Karnataka was worse before December last year.
“A large number of cows and oxen died from it. A majority of them contracted the disease as it was spreading easily. This disease affected the immunity of the cattle and there was no direct treatment available. Its spread was controlled by isolation, vaccines, and Ayurvedic treatments,” said an official from the department.
“However, from January this year, there was an improvement and the milk production and procurement is also gradually on the increasing trend,” the official added.
Shivaputragouda Patil, a farmer leader from the Karnataka State Farmers’ Association and Green Brigade, told South First that there are around 100 houses in his village that have cows that produce around 100 litres of milk on an average each day.
“If the existing market is disturbed by another milk retailer, the impact will end up falling on our heads, burdening us with falling milk prices,” Patil told South First.
“The price that the cooperative society gives us would go down. We will not have any place to sell our cows’ milk,” he added.
The farmer-leader was also of the view that all the three mainstream parties — the BJP, the Congress, and even the JD(S) — had collectively let down farmers in Karnataka, and he was campaigning for voting for NOTA.
“The BJP is only bothered about Ambani and Adani, the Congress won’t speak out against the BJP in Opposition, and the JD(S) is only interested in waiving loans. All we ask for is a good price for agriculture and dairy produce,” he said.
Former KMF managing director AS Premnath told South First that while there was an unsigned and unwritten agreement between strong milk federations that they would not enter each other’s market territory, there were exceptions.
“For example, we sent milk to Kerala in tankers where they packed the milk in their Milma brand packets and sold it in retail. At KMF, we repack certain Amul products like ice cream and flavoured milk and sell them in retail,” he explained.
“However, we would not entertain any disturbances that would affect our retail supply of daily essentials, such as Nandini milk and curd,” Premnath told South First.
“This is not the first time Amul has tried this. In 2010-2015, when I was the director of the KMF, Amul attempted to come into the Karnataka market, but we held mutual discussions and it was avoided,” said Premnath.
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