A milk battle reminiscent of the Nandini vs. Amul debate in Karnataka has emerged in Kerala, pitting Milma against Nandini. The Kerala Cooperative Milk Marketing Federation finds itself at odds with the Karnataka Cooperative Milk Producers’ Federation Limited (KMMF), as the latter has opened outlets in Kerala without consultation. Nandini, operating under KMMF, has already established six outlets in the state and plans to open three more, aiming for a presence in every taluk within two years.
While Milma clarifies that it does not oppose the sale of Nandini’s value-added products, it expresses unease about the sale of milk packets. The entry of the second-largest milk producer in the country poses a visible threat to Milma. Nandini procures around 81 lakh kilolitres of milk daily and generated a turnover of Rs 19,784 crore in FY22, while Milma’s procurement stands at 14 lakh litres daily with a turnover of Rs 4,300 crore in the same period.
The Minister for Animal Husbandry, Dairy Development, Milk Co-operatives in Kerala, J Chinchurani, deems Nandini’s entry into the Kerala market unfair, as cooperative rules restrict product sales in specific regions. Both Milma and Nandini are government-run organizations functioning on the cooperative model.
Milma’s chairman, KS Mani, emphasizes their concern lies with Nandini’s sale of milk packets, potentially adversely affecting dairy farmers in Kerala. He states, “We are not against their entry into the Kerala market. Amul has been marketing milk products in the state for years now. The sale of milk packets by Nandini is what we are concerned about. It could adversely affect the dairy farmers in the state.”
Milma, founded 42 years ago for Kerala’s dairy farmers, currently comprises 10 lakh dairy farmers across 3,200 dairy cooperatives. The organization ensures that Kerala’s farmers receive the highest value for their milk in the country. Alongside a subsidy of Rs 4, which includes contributions from the local administration and the dairy department, additional milk value and statutory subsidies are passed on to the farmers.
Milma’s most popular milk packet, the homogenized toned 500ml variant, is currently priced lower in Kerala at Rs 26, compared to Nandini’s milk packet priced at Rs 27. However, given Nandini’s lower procurement price in Karnataka, the chances of price reductions in Kerala are high.
Addressing the milk deficit, the Karnataka cooperative plans to initially supply 25,000 liters of milk per day, aiming to bridge the 2.5 lakh liters deficit in the Kerala market. Milma’s chairman reveals that Milma used to procure up to 2 lakh liters of milk from Nandini to fulfill the deficit. He adds, “Nandini’s argument is not valid as Milma is ready to procure milk from them to meet the deficit.”
The Kerala government has approached the National Dairy Development Board (NDDB) to mediate the conflict between Milma and Nandini. Milma’s chairman states that the cooperative will continue its efforts to enhance production regardless of Nandini’s entry. Furthermore, the brand intends to strengthen its presence in Karnataka and Tamil Nadu to promote the sale of its milk products.
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