The Amul vs. KMF controversy

  • Amul, the country’s largest dairy company, said on April 5 that it would distribute milk and curd through Bengaluru e-commerce platforms.
  • Kannadigas reacted angrily to the announcement, seeing it as an attempt to undermine the Karnataka Milk Federation’s famed Nandini milk brand. (KMF).

Political Disagreement

  • The Amul-KMF feud became a political instrument in poll-bound Karnataka.
  • Dissenting voices expressed concern that Amul would eat into Nandini’s market and endanger the company’s operations in the state.
  • The ruling party has been accused of seeking to privatise the milk industry and “finish off” a domestic product.

What is the purpose of the protests?

  • Overpricing: The price discrepancy between Amul’s toned milk and Nandini’s toned milk was emphasized, with Amul’s milk costing 54 cents per litre and Nandini’s costing 39 cents per litre.
  • Unhealthy competition: According to the federation, KMF’s online presence in the state may cause unhealthy rivalry with Amul’s online presence, despite the cost difference.

The turf war

  • The KMF is the second-largest milk cooperative in India after Amul.
  • While Amul and KMF compete in neutral areas such as Mumbai, Nagpur, Goa, Hyderabad, and Chennai, they have not faced off on their own turfs.
  • Karnataka is a milk surplus market that meets the state’s demands while exporting surplus to other states.
  • KMF intends to write to the National Dairy Development Board, recommending that Amul refrain from entering the Bengaluru market and instead focus on milk-deficient states.
  • Amul clarifies Amul emphasised that it was introducing its fresh milk and curd through e-commerce platforms and not through the mass market distribution network.
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