Explained: Nandini vs Amul war in Karnataka

The announcement by Gujarat-based dairy cooperative 'Amul' that it was going to launch its milk and curd in Bengaluru, has sparked a political slugfest in Karnataka, ahead of polls on May 10.

Congress and BJP have locked horns over the issue with Congress accusing the ruling BJP of "plotting to kill" the State's formidable dairy brand 'Nandini' while BJP has retaliated saying Congress is spreading misinformation for political gains.

Meanwhile, there are a lot of flutter on social media over the issue with hashtags such as #SaveNandini and #GobackAmul trending.

How it started

Last year, Union Cooperation Minister Amit Shah announced that 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.

The statement was met with criticism after some vested interests went on to claim that Amul is trying to "root out" Nandini and thus undermining the Kannadiga identity and culture. The Opposition misinterpreted his statement stating that it is a ploy to merge Nandini with Amul.

The latest trigger

The debate triggered after Gujarat-based cooperative society Amul announced about its foray into Bengaluru. "A new wave of freshness with milk and curd is coming to Bengaluru. More information coming soon. #LaunchAlert. From Kengeri to Whitefield, wishing everyone a Taaza day," it tweeted.

Interestingly, there is an unwritten rule among the milk federation that a cooperative from one State should avoid competing with another.

A political boil point?

The Nandini vs Amul controversy has become the latest flashpoint between the ruling BJP and the Opposition Congress and JDS in this election season.

Opposition leaders such as former chief ministers Siddaramaiah and H.D. Kumaraswamy have urged Chief Minister Basavaraj Bommai to prevent the entry of Amul to protect the interest of the State's dairy farmers.

Accusing Congress of politicising Amul's entry into Karnataka, Bommai said: "We have absolute clarity with regard to Amul. Nandini is a national brand. It's not restricted to Karnataka. We have popularised Nandini as a brand in other States as well." He added that not only has milk production increased in the State but incentives have also been given to the milk producers.

The Chief Minister stressed that several major dairies of KMF in the State have been established during BJP rule. "Production and number of products have increased. There is a market too (for Nandini products). Hence, Nandini will become a number one brand in some days," Bommai said.

The Chief Minister said the State is selling Nandini in other states as well. "There is no need to be afraid of Amul. Our Nandini is an established brand. We will take all the steps to give Amul a tough competition," he pointed out.

Wasn't Amul operating in Karnataka before?

Amul had been selling its butter, Ghee, yogurt and ice cream in the state for a very long time. Not just Amul, there are some other dairy brands selling packaged milk and curd such as Dodla and Heritage (Telangana), Tirumala, Arokya and Milky Mist (TN), Namdhari and Akshayakalpa (Karnataka).

What is the opposition's fear?

The opposition parties charge the government will create scarcity of Nandini products, making it less competitive to Amul and force people to buy Amul products once its milk and curd are allowed to be sold.

Is there any decline in milk production?

The Bangalore Milk Union Limited (BAMUL), part of KMF, admitted production has declined owing to summer, which happens every year. Milk production has reduced from 90 lakh litres a day to 75 lakh litres a day.

Is it about price war?

As of now, the prices of Nandini is the lowest with toned milk priced at Rs 39 a litre while 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.

Nandini is the second largest dairy brand in the country after Amul in terms of turnover and owned by the Karnataka Cooperative Milk Federation (KMF).