Ahead of the May 10 polls, political parties in Karnataka appear to be locked in an ‘utterly, bitterly’ battle over dairy products. This was triggered by Gujarat-based Amul’s move to enter the Bengaluru market which, Opposition parties allege, would affect Karnataka’s dairy co-operative Nandini, and lakhs of dairy farmers in the state.
How it started
In December 2022, Opposition Congress and JD (S) launched a protest after Union cooperation minister Amit Shah said Gujarat Cooperative Milk Marketing Federation (GCMMF)’s Amul and Karnataka Milk Federation (KMF)’s Nandini would work jointly to set up primary diaries in every village of Karnataka in three years. Stating that it is a ploy to merge Nandini with Amul, opposition parties in the state have condemned the move, saying that it will affect the interest of Karnataka and dairy farmers.
So, what now?
On April 5, Amul tweeted that its dairy products like milk and curd will be available from Kengeri (West Bengaluru) to Whitefield (East Bengaluru). Following this, pro-Kannada groups have launched #SaveNandini and #GoBackAmul hashtag online campaigns against Amul's move. Backers of Nandini stated that there is an unwritten code that a cooperative from one state should avoid competing with another. In fact, KMF plans to write to the Union government and the National Dairy Development Board on the issue. Nandini is the second-largest milk cooperative in the country after Amul. The hotel association in Bengaluru has decided to use only homegrown Nandini products.
An election issue boiling?
Opposition leaders such as former chief ministers Siddaramaiah and HD Kumaraswamy were quick to react to the issue, urging Chief Minister Basavaraj Bommai to prevent the entry of Amul to protect the interest of the state's dairy farmers. Siddaramaiah and Kumaraswamy alleged that Amul was trying to gain a back-door entry into the state with the Union government’s support. They also urged Kannadigas to pledge not to buy Amul products. They also cited the merger of Karnataka-based Vijaya Bank, which began in Mangaluru in 1931, with Gujarat-based Bank of Baroda in 2019.
From the CM's desk
Speaking to reporters in Delhi, Chief Minister Bommai ruled out opposing Amul's entry into Bengaluru. He clarified that there were no efforts to merge KMF with Amul and said that he's confident Nandini will emerge as the number one dairy brand in India in the years ahead. He laid the blame on opposition parties for engaging in politics over Amul.
Nandini in advantageous spot
While Nandini’s toned milk is priced at Rs 39 a litre, Amul is selling the same at Rs 54. Amul's half-litre curd is priced at Rs 30 while Nandini sells the same for Rs 24.
Din over dahi
In March 2023, the Food Safety and Standards Authority of India (FSSAI) was forced to withdraw a circular after an outrage. The regulator had notified the omission of the term 'curd' from the standards of fermented milk products and insisted on the use of the Hindi word 'dahi'. After the outrage, FSSAI allowed using the term 'curd' along with the regional nomenclature 'Mosaru'.
Know about KMF
According to KMF, it has 14 unions, 24 lakh milk producer members, 14,000 milk producers’ co-operative societies spread over 22,000 villages and procures 8.4 million litres of milk per day. It has more than 65 milk and related products and pays Rs 17 crore a day to farmers. It also supplies products to armed forces and exports milk to many countries, including in the Middle East. In 2021-2022, KMF reported a turnover of nearly Rs 19,800 crore. On the other hand, Amul reported a provisional turnover of Rs 55,055 crore for the financial year 2022-23.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
