With milk war hotting up, Amul may enter Karnataka after polls

Iconic Gujarat-based dairy cooperative Amul's decision to sell its products in Bengaluru through quick commerce platforms, just a month before the Assembly polls, seems to have opened a Pandora's box in Karnataka.

However, recent reports suggest that the dairy major's rollout in the city is likely to be postponed, given that the political slugfest over the issue carries the potential to singe the BJP in the upcoming Assembly elections with the Opposition taking undue advantage of it.

On April 5, Amul had tweeted, ''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.''

In another tweet, the dairy giant said, ''The #Amul family is bringing in some Taaza into #Bengaluru city. More updates coming in soon. #LaunchAlert. Taaza arriving soon in Bengaluru.''

While the opposition parties have charged that the BJP government was out to "finish" Karnataka Milk Federation (KMF) brand 'Nandini', the saffron party accused the Congress of unleashing a "misinformation campaign" over Amul's presence in Karnataka.

BJP IT cell head Amit Malviya asserted that BJP has done far more than the opposition parties to strengthen KMF and its products under the brand name Nandini.

The development came after Congress leader Siddaramaiah took a swipe at Prime Minister Narendra Modi following Amul's announcement of its plans to sell milk and curd in the Bengaluru market. With Modi visiting the State on Sunday, the former Karnataka Chief Minister asked if the purpose of his trip was "to loot the State?"

State Minister for Cooperatives S.T. Somashekar said, "The production of milk during the summer is relatively less. There are 15 milk unions in Karnataka and all are making profits. Amul is selling milk online for Rs 57 per litre but Nandini milk costs only Rs 39 per litre. We send Nandini products to other States, including Tamil Nadu. We want to develop Nandini products like how Gujarat did it for Amul."

Allegations are also being made that an artificial scarcity of Nandini products have been created in the State to make room for Amul products there.

Interestingly, the political parties locked horns even as firms and brands are looking at means to go "glocal".

No merger plans

Meanwhile, seeking to douse the controversy over the country's largest dairy maker's decision to expand its operations to the poll-bound State, Amul managing director Jayen Mehta on Monday clarified there is "no question of competition" between Amul and Nandini.

Amul's foray into markets in other States is not new. Founded on 14 December 1946, Amul has grown into a dairy behemoth over the years. While Amul, the dairy brand is the far largest seller of milk products in the country, KMF is a prominent brand and rules the market in southern States equally, and is the second largest dairy co-operatives in the country after Amul.

Amul vs Nandini controversy

The current controversy started in December last year when Union Home Minister Amit Shah said at a rally in Mandya, "Together Amul and Nandini will help set up primary diaries in every village of Karnataka within three years."

The Opposition alleged that the statement meant that the two cooperative brands should be merged together. However, both Chief Minister Bommai and State Cooperative Minister S.T. Somashekar have rubbished it.

The issue picked up pace last week when Amul announced that it will begin delivering milk and curd in Bengaluru. However, given its massive network, no State government has ever dared to dictate terms to KMF so far.

A majority of milk producers from the Old Mysuru region such as Mandya, Mysuru, Ramnagar, Kolar and central Karnataka district of Davanagere rely heavily on KMF. This region is important politically as it comprises the powerful Vokkaliga community, which account for around 14 per cent of the State's population.

This is also a strong belt for Congress and JDS while BJP has been trying hard to make inroads there. The importance of Nandini can be seen in the fact that it has been endorsed by the likes of Dr. Rajkumar, Upendra and Puneeth Rajkumar. This explains why the BJP is trying its best to counter the Opposition onslaught on the issue.