Battle in Karnataka over milk before assembly elections, but know why Nandini is heavy on Amul

Nandini Vs Amul: Voting will be held for Karnataka assembly elections on 10 May 2023, but before that the entry of Amul brand in Karnataka has become the biggest election issue in the state. Nandini is a very popular local milk and dairy brand in Karnataka. But after the announcement of Amul’s entry, the electoral battle between Congress and BJP has started. Nandini dominates the milk and dairy market in Karnataka.

The tussle between Nandini and Amul started when Amul announced that it would sell dairy products in Karnataka through online and e-commerce markets. However, the apprehension deepened in Karnataka that Amul’s entry would jolt the Nandini brand and end its supremacy in the Bengaluru market.

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

The issue of supremacy battle between Nandini and Amul in the milk market took a political turn. The Congress linked the challenge being faced by Amul to the Nandini brand on the ruling party BJP with the identity of Karnataka. And the issue of Amul’s entry has now become the biggest election issue. But do you know that it is not so easy for Amul to challenge Nandini in Karnataka. Because at the price at which Nandini sells her milk in the market there, it is very difficult for Amul to survive in front of her.

Comparing the prices of milk of Karnataka Cooperative Milk Producers Federation’s (KMF) Nandini brand and Gujarat Cooperative Milk Marketing Federation’s (GCMMF) Amul brand, Nandini Amul wins. Nandini’s milk prices are very low as compared to Amul’s. Nandini’s toned milk, which costs only Rs 39 per litre, contains 3 per cent fat and 8.5 per cent SNF (solids-not-fat). In comparison, the price of Amul’s toned milk is Rs 52 in Delhi and Rs 54 per liter in Gujarat.

If we look at the prices of Nandini’s full-cream milk, Amul’s full-cream milk, which has 6% fat and 9% SNF, is sold by Amul at Rs 66 per liter in the capital Delhi and Rs 64 per liter in Gujarat. While Nandini sells a packet of 900 ml full cream milk for Rs.50 only and a packet of 450 ml full cream milk for Rs.24. Till March, Nandini used to sell one liter pack of this milk for Rs 50 and 500 ml pack for Rs 24. But after increasing the cost, Nandini reduced the packet size but there was no change in the prices. Means the price of Nandini’s full cream milk is very less as compared to Amul’s full cream milk. The price of Nandini’s curd is only Rs 47 per kg, while the cost of a 450 gram packet of Amul’s curd is Rs 30, that is, the cost of one kg of Amul curd becomes Rs 66 per kg. Looking at the prices, it is not possible for Amul to compete with Nandini. The price of Nandini’s milk is the lowest in the country.

The Karnataka government gives an incentive of Rs 1200 crore annually to its 25 lakh dairy farmers on milk. At present, the state government gives an incentive of Rs 6 per liter to dairy farmers on milk. Other opposition parties, including the Congress, believe that Amul’s entry may dent Mandini’s market share. Along with telling a conspiracy to destroy the Nandini brand through Amul, the opposition is telling an injury to Kannada pride. The Hotel Association of Bangalore has asked all hotels to buy only the Nandini brand.

The state’s BJP government and Chief Minister Basalrao Bommai, which came on the backfoot after the opposition’s attack, have denied the possibility of threat to the Nandini brand due to the entry of the Amul brand. He has ruled out any possibility of merger of Nandini with Amul. He said that there should be no politics on Amul’s entry. On the other hand, Amul says that it has been selling Amul milk since 2015 in Belgaum and Hubli-Dharwad in North Karnataka. And is entering Bengaluru only through online e-commerce route.

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