Not 'Utterly Butterly' Ride: Why entry of dairy giant Amul is facing massive opposition in Karnataka

Amul is formally entering the markets in poll-bound Karnataka.

The announcement, nevertheless, seems to have angered the Kannadigas, who are fiercely opposing the action.

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets its staple goods under the well-known brand name “ Amul,” announced via Twitter on 5 April that it will deliver fresh milk and other goods to Bengaluru.

In a tweet, it announced, “A new wave of freshness with milk and curd is coming to Bengaluru. More information coming soon.”

A new wave of freshness with milk and curd is coming
to Bengaluru. More information coming soon. #LaunchAlert pic.twitter.com/q2SCGsmsFP

— Amul.coop (@Amul_Coop) April 5, 2023

After the announcement, hashtags like #GobackAmul started trending on the micro-blogging site.

It is Amul vs Nandini

The criticism of Amul comes at a time when the state has its own regional brand, KMF, which markets milk and curd under the Nandini name in the state of Karnataka.

According to The Wire, the successful Karnataka Milk Federation (KMF) is already meeting the state’s need for a variety of milk products through its flagship brand, Nandini.

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KMF offers its products on demand outside of Karnataka in states including Andhra Pradesh, Tamil Nadu, Kerala, Goa, and Maharashtra in addition to Delhi.

Notably, Amul is already present in Karnataka as it has been selling ice creams in the state for a long time. Recently, it has also launched Kannada-language Facebook and Twitter profiles where it is providing complete product information.

Nonetheless, the locals criticised the company’s choice to sell milk and curd in Bengaluru. By using hashtags like “#AmulGoBack,” “#SaveKMF,” “#SaveNandini,” and others, locals have requested that Amul products be boycotted.

As a show of opposition to Amul milk, Bengaluru’s hotels have also decided to only serve Nandini brand products, reported Livemint.

According to PC Rao, president of the Bruhat Bengaluru Hotels Association, all of the city’s hotels have agreed to utilise solely Nandini goods in order to support regional farmers.

Many people are wondering why Amul, which is also a cooperative, is acquiring another cooperative.

The Wire quoted AS Premnath, a former managing director of the KMF, as saying that there is an unwritten agreement among milk federations that they should not compete with one another. Also, they promised not to encroach on other people’s market space.

The introduction of Amul into Karnataka will undermine the fundamental concept of cooperative milk societies, he argued, even if there are no restrictions on private corporations selling milk in any state.

Narasimha Murthy, the president of the Bengaluru Milk Union, predicted that if Amul begins selling its goods in the region, Nandini products will face serious competition.

Also read: An average cow produces 10.8 tonnes of milk a year. Now, comes China’s cloned super cows which can give 18 tonnes

Congress vs BJP on Amul’s entry into Bengaluru markets

After Amul announced its foray into the Bengaluru market, Congress and the BJP have been at odds.

Chief Minister Basavaraj Bommai claimed the administration is clear on the Amul issue, despite accusations from the opposition Congress that the state’s dominant dairy brand, Nandini, is the target of a conspiracy by the BJP-controlled government.

According to ANI, accusing Congress of politicising Amul’s entry to Karnataka, CM 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,” adding that not only has milk production increased in the state but incentives have also been given to the milk producers.

State Health Minister K Sudhakar also hit out at Congress and said, “Nandini products are sold in other states and countries too and our Nandini brand is capable of facing any competition. Congress is doing politics in everything and shedding crocodile tears for farmers.”

While speaking to reporters, Sudhakar said that Nandini products are the pride of the state. Slamming the previous government, he added that it is only the BJP that supported the local farmers and the brand.

“Former CM BS Yeddyurappa for the first time gave a subsidy of ₹2 per litre to farmers. Now that is increased to ₹5. If any government has supported our farmers and Nandini the most it is the BJP government.”

He further added that not just Amul, but already 16 to 18 different private and public sector brands are selling their milk products in the state, but Nandini, due to its high quality, remains the most preferred brand in the market.

“So to say that Amul is a threat to Nandini is an insult to our home-grown brand,” he added.

Karnataka Congress chief DK Shivakumar stated that Nandini was a “better” brand than Amul.

“We want to protect our milk and our farmers. We already have Nandini which is a better brand than Amul…We don’t need any Amul…our water, our milk, and our soil is strong,” Shivakumar told ANI.

On Friday, Siddaramaiah said, “All the Kannadigas have to unanimously resist the usurpation of the KMF, which is built for the welfare of the farmers of the country. All Kannadigas should pledge not to buy Amul products.”

The Congress leader further stated, “In addition to language treason by the imposition of Hindi and land treason by trespassing within the state borders, now the BJP government is going to betray the farmers by shutting down Karnataka Milk Federation (KMF), which is the livelihood of millions of dairy farming families in the country.”

Former chief minister HD Kumaraswamy on Twitter said, “Now there is a 3rd plot to finish the lifeline of Kannadigas Nandini. Plot-1: Merger of Nandini with Amul; Union Home Minister Amit Shah’s statement. Plot-2: Print the Hindi word ‘Dahi’ on curd.”

ಕನ್ನಡಿಗರ ಜೀವನಾಡಿ ನಂದಿನಿಯನ್ನು ಮುಗಿಸಲು ಈಗ ನಡೆದಿದೆ 3ನೇ ಸಂಚು.

ಸಂಚು1: ಅಮುಲ್ ಜತೆ ನಂದಿನಿ ವಿಲೀನ; ಕೇಂದ್ರ ಗೃಹ ಸಚಿವ @AmitShah ಹೇಳಿಕೆ
ಸಂಚು2: ಮೊಸರಿನ ಮೇಲೆ ಹಿಂದಿಯ 'ದಹಿ' ಪದ ಮುದ್ರಣ

ಕನ್ನಡಿಗರ ತೀವ್ರ ವಿರೋಧದಿಂದ ಎರಡೂ ಸಂಚು ವಿಫಲ. 3ನೇ ಸಂಚು ಸಫಲಗೊಳಿಸಲು ಅಮುಲ್ ಮೂಲಕ ಕೇಂದ್ರ ಸರಕಾರ ಹೊರಟಿದೆ. 1/10#ನಂದಿನಿಉಳಿಸಿ

— ಹೆಚ್.ಡಿ.ಕುಮಾರಸ್ವಾಮಿ | HD Kumaraswamy (@hd_kumaraswamy) April 8, 2023

The BJP on Sunday accused the Congress of unleashing a “misinformation campaign” over dairy cooperative Amul’s presence in Karnataka and asserted that it has done far more than the opposition party to strengthen the Karnataka Milk Federation and its products are sold under the brand name Nandini.

“Amul is NOT entering Karnataka. Both Amul and KMF sell their products across quick-commerce platforms. KMF’s turnover went up by (Rs) 10,000 crore after BJP came to power in 2019. In 2022, turnover stood at (Rs) 25,000 crore, of which (Rs) 20,000 crore went back to farmers of Karnataka,” BJP IT department headed Amit Malviya tweeted.

Malviya said, “There is a reason why India doesn’t TRUST Congress. They LIE! Latest being the misinformation campaign that Karnataka Milk Federation, which owns Nandini, is going to merge with Amul.” The BJP has done far more to strengthen KMF and make Nandini a global brand.

- Amul is NOT entering Karnataka
- Both Amul and KMF sell their products across quick-commerce platforms
- KMF’s turnover went up by 10,000 crore after BJP came to power in 2019. In 2022, turnover stood at 25,000 crore, of which 20,000 crore went back to farmers of Karnataka
3/n

— Amit Malviya (@amitmalviya) April 9, 2023

Amit Shah on cooperation between Amul and KMF

The current debate began on 30 December 2022, when Union Home and Cooperation Minister Amit Shah visited Karnataka’s Mandya district to dedicate a Rs 260 billion dairy project, according to Hindustan Times.

Then, he had requested Amul and KMF work together.

He had said, “Amul and KMF can work together towards ensuring that there is a primary dairy in every village in Karnataka. KMF will get all the technical support and cooperation from Amul. If they work together, it will benefit the farmers all over the country. Amul and KMF have to work together to boost the cooperative dairy in Karnataka.”

Shortage of milk in Karnataka

Amul’s introduction into the Karnataka dairy market has coincided with a milk shortage, which often occurs during the summer due to a lack of green manure for the cows.

However, other people contend that the shortage was purposefully made because the state’s BJP administration wanted to make it easier for Gujarat’s Amul to sell in Karnataka, reported The Wire.

According to KMF representatives, the lumpy skin disease in cattle caused a milk supply problem. The state’s milk production decreased by 10 lakh litres per day in January of this year.

With inputs from agencies

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