Nandini Vs Amul: The Gujarat-Based Milk Brand Facing Backlash In Poll-Bound Karnataka — Explained

Entering Bengaluru will pit Amul against the home brand Nandini which many people are seeing as unwanted competition between two successful milk cooperatives.

A fresh controversy has arisen in Karnataka after Amul announced its entry in the Bengaluru market

Source : Getty

In the run-up to the Karnataka Assembly elections, a fresh controversy has arisen in the state after Amul, the Gujarat-based dairy cooperative, announced that it will make an entry into the Bengaluru market. After the announcement was made by Amul, opposition parties and locals alleged this would impact Karnataka’s dairy co-operative Nandini's business and the livelihoods of lakhs of dairy farmers in the state.

Entering Bengaluru will pit Amul against the home brand Nandini which many people are seeing as unwanted competition between two successful milk cooperatives.

The brand on April 5 tweeted that it will supply fresh milk and curd in Bengaluru. In a Tweet, it wrote, “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

Since its announcement, retaliatory hashtags like #SaveNandini and #GoBackAmul started trending on Twitter as locals intensified their support for Nandini.

Many fear that if Gujarat-based Amul is allowed to sell its dairy products such as milk and curd in Karnataka then it will affect the incomes of local farmers. Amidst all this, there are speculations doing rounds that KML will be merged with Amul.

Politics Around Amul Vs Nandini

Over the past three days, the conflict has intensified as opposition leaders from Congress and Janata Dal (Secular) (JDS) have accused the ruling BJP government of "killing" the homegrown Nandini brand of the state.

Calling out PM Modi on Twitter, Congress leader Siddaramaiah wrote, “You have already stolen banks, ports, and airports from Kannadigas. Are you now trying to steal Nandini (KMF) from us?”

Speaking to news agency ANI, state Congress chief DK Shivakumar slammed Gujarat-based dairy cooperative society Amul’s entry into the Karnataka market, “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.”

In a series of tweets, JDS leader HD Kumaraswamy expressed apprehension that the entry of Amul would have a negative impact on the business of KMF and the livelihoods of thousands of dairy farmers in the state. He argued that it is a widely accepted practice for state cooperatives to refrain from entering states that have their own cooperatives, which is why Nandini has not expanded into the Gujarat market. He further alleged that the state government has provided GCMMF with significantly discounted rental space in Koramangala, Bengaluru.

BJP On The Controversy

Chief Minister Basavaraj Bommai said the government is clear on the issue and accused 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."

He added that not only has milk production increased in the state but incentives have also been given to the milk producers.

Despite mounting pressure from the Opposition Congress and JD(S) to block Amul milk and curd from entering Bengaluru, Bommai rejected the idea, saying “Nandini products are being sold in other States too. The government will take steps to help Nandini in competing with Amul in the open market, but will not block Amul. Nandini will become the number one brand in the country.”

Amul's Response

Jayen Mehta, the Managing Director (MD) of GCMMF, told Financial Express that he is aware of the Twitter uproar over their recent announcement. He further stated that they are presently only considering e-commerce/quick commerce channels and not general trade. Mehta clarified that to enter general trade, price points would need to be reduced, but there are no plans for that currently. 

"I would like to indicate that we are only looking at e-commerce channels right now. We are not looking at general trade at the moment. For that, we will need to bring down price points. There is no such plan currently. And a modern trade entry of Amul in Bengaluru will happen only six months later,” he said as quoted by Financial Express.

Bengaluru Hotels Association Support Nandini

In a show of support, the Bruhat Bengaluru Hotels Association (BBHA) on Sunday announced that it will only use 'Nandini' milk to "support the state farmers," news agency ANI reported.

"All the hotels in the city have unanimously decided to use only Nandini products to encourage the local farmers," BBHA president PC Rao told Bengaluru Mirror.