Uproar over Amul bid to milk Bengaluru market

Netizens, former KMF officials and politicians pointed out that Amul is breaking the 'unwritten rule' of cooperative societies

India’s biggest dairy brand Amul’s announcement on Twitter on the supply of liquid milk and curd in Bengaluru has met with a severe backlash in Karnataka.

Netizens, former Karnataka Milk Federation (KMF) officials and politicians pointed out that Amul is breaking the “unwritten rule” of cooperative societies and is indulging in predatory practices to sell its “stale milk”. KMF is the second-largest milk procurer in the country.

Netizens used ‘#Amul Go back’ and ‘#Save KMF’ to show how Gujarat Cooperative Milk Marketing Federation Ltd, which sells its milk products under the Amul brand, is trying to enter the Bengaluru market which is now dominated by KMF’s Nandini brand.

Also Read | Amul revenue up by 18.5% in FY23 to Rs 55,055 crore

“It is an unwritten rule among milk federations not to enter into competition in other states. KMF believes it is unethical, which is why it has not ventured into other states despite surplus procurement,” said KMF former managing director Premanath A S. While there is no restriction on companies selling milk in any state, Amul’s entry into Karnataka liquid milk would defeat the very idea of co-operative milk societies, he adds.

Senior officials in KMF, who did not wish to be named, said KMF in its peak season supplies nearly five lakh litres of milk to milk-deficit states like Andhra Pradesh, Tamil Nadu, Kerala, Goa and Maharashtra on the “request” of milk cooperatives in these states. In such instances, milk is supplied in bulk and the respective state milk unions sell them under their brands.

Rajya Sabha MP G C Chandrashekhar, in a press release, wondered if an artificial scarcity is being created in Karnataka to help Amul, which has been trying hard to gain its foothold in Bengaluru, launch fresh milk. However, KMF director (Marketing) M Raghunandan said there is no shortage of milk in Karnataka and it continues to procure nearly 73 lakh litres a day. The state’s daily requirement is 45 lakh litres of milk and 10 lakh litres of curd. Given that Bengaluru has a more cosmopolitan population, officials in KMF fear that non-Kannadigas could switch from the Nandini brand. Sources in Belagavi Milk Union Ltd informed DH that for the last five-six years, Amul has been supplying 200 litres of milk in its jurisdiction.

“Even diversion of 5,000 litres to 10,000 litres a day is a huge loss for KMF,” said Premanath. Sources also pointed out that Amul is indulging in “misleading advertisement” as it cannot sell “fresh milk” to consumers in Karnataka. “The Nandini milk that customers get every day is processed and supplied to them within 24 hours after milking. Whereas, milk procured in Gujarat will take at least two-three days to arrive in Karnataka and it will be three to four days by the time it reaches customers,” said Bengaluru Milk Union Ltd president Narasimhamurthy.

The 'unwritten rule' applies only for supply of liquid milk, which has a shorter shelf life, and not to the byproducts, says Narasimhamurthy.

Amul has not created any cooperative society in Karnataka, which would mean they have to supply milk procured from Gujarat or supply milk procured in neighbouring states under its brand, he said.