In an ironic move, the Kerala Cooperative Milk Marketing Federation (KCMMF), popularly known as the Milma brand, is now opposing the entry of Karnataka Milk Federation (KMF) Nandini into the State.
Karnataka-based dairy brand Nandini has grown into Kerala by opening two platforms in the southern State. However, the move criticize by the local Milk Marketing Cooperative Union.
The move comes amid the ongoing controversy over the arrest of Amul in Karnataka, amid fears that the brand would affect KMF’s Nandini, a brand made by farmers.
Since certain state milk marketing unions tend to “aggressively enter markets outside their respective states,” the KCMMF has resisted the move.
The federation acknowledged that such a move would result in a complete departure from the cooperative principles upon which the country’s dairy sector is find and which have benefited thousands of dairy farmers.
Milma’s president calls the practice “immoral.”
In a statement, KS Mani, president of Kerala’s local brand Milma, called the practice “unethical”. The tendency to enter markets outside its domain by opening points of sale or attracting franchisees avoiding. Initially, they sold only value-added products but later expanded their operations to include liquid milk sales. Subsequently, they commenced delivering milk from shops to stores.
According to Mani, the attempt by the Gujarat Dairy Cooperative Federation (Amul) to promote its staple in Karnataka has elicited a strong reaction from stakeholders in the State. But the Karnataka Milk Marketing Federation recently launched its milk and other products and opened its outlets in some parts of Kerala to sell the Nandini brand.
How can this be justified? Whoever does this is an extremely unethical practice that undermines the entire goal of the Indian dairy movement and is detrimental to the interests of the farmers.
Mani said this trend would only fuel unhealthy competition among states, adding that the central and StateState governments should come together to reach a consensus.
“Some State Milk Marketing Federations have recently shown a growing propensity to offer their products outside of their geographic regions. The federal principles and cooperative spirit upon which the State Dairy Cooperative Societies of the nation find are gravely violated by this.
The operational movement is create and nurtured by pioneers like Tribhuvandas Patel and Dr. Verghese Kurien,” Mani said.
Cross-border Marketing of Milk
The Karnataka Milk Federation is criticize by Milma for expanding its stores into portions of Kerala, claiming that this was a flagrant violation of the cooperative principles upon which the nation’s dairy business was set up for the benefit of thousands of dairy farmers.
He also cited an agreement that establishes that the cross-border marketing of milk is a “serious encroachment on the territory of sale of the State in question.”
“According to the existing agreement and good business relations between dairy cooperatives, cross-border marketing of fluid milk avoiding, as it amounts to an open invasion of the sales territory of the State concerned.
In the spirit of cooperative principles, that they are base on mutual consent and goodwill was appreciate for a long time,” he said.
According to the Economic Times report, Mani has also written to KMF. “In the dairy sector, we all have to thrive by being ethical to one another,” Mani is quote as saying by ET.
Tejashwi Surya on Nandini vs. Milma
Tejashwi Surya on Karnataka BJP MP Tejashwi Surya made a hint to Congress leader Rahul Gandhi who recently visited Karnataka.
The Congress Leader, State Party Chief DK Shivakumar and General Secretary KC Venugopal visited Nandini Milk Parlor in Bangalore. He bought Nandini ice cream and the flagship brand of Karnataka Milk Federation (KMF), calling it the “pride of the state”.
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