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Explained: Why is Amul facing a backlash for entering the Bengaluru market?
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Explained: Why is Amul facing a backlash for entering the Bengaluru market?
Apr 7, 2023 6:02 AM

Gujarat-based milk cooperative Anand Milk Union Ltd or Amul has been facing a severe backlash online after it announced plans to enter the Bengaluru market with its liquid milk and dairy products on Wednesday, April 5.

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Amul tweeted that it will supply fresh milk and other products in Bengaluru and it drew massive criticism from many users. The people of Karnataka supported their state-grown brand ‘Nandini’ and the #gobackAMUL hashtag started trending on Twitter.

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

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

The announcement was considered as an attempt to trample upon the Karnataka Milk Federation (KMF), especially its local brand ‘Nandini’. The KMF is currently the second-largest milk procurer in the country. Many users from Karnataka came out in support of their local brand and demanded a boycott of Amul in Bengaluru.

Hashtags like '#SaveKMF' were also used to show support to KMF's Nandini brand.

Several users came in support of Nandini and said they don’t need Amul in Bengaluru.

Former KMF officials and politicians also voiced their concerns on the matter. They accused Amul of indulging in predatory practices and breaking the "unwritten rule" of cooperative societies.

"It is an unwritten rule among milk federations not to enter into competition in other states. KMF believes it is unethical, which is why it has not ventured into other states despite surplus procurement," said KMF former managing director Premanath A S to the Deccan Herald.

Bengaluru Milk Union Ltd president Narasimhamurthy said that Amul has not created any cooperative society in Karnataka, which could mean they would be supplying milk procured from Gujarat or neighbouring states, the report added.

Rajya Sabha MP GC Chandrashekhar, mentioned in a press release that an artificial scarcity is being created in Karnataka to help Amul, to help it gain a foothold in Bengaluru and launch fresh milk.

Current KMF director (Marketing) M Raghunandan said that there is no shortage of milk in the state and the KMF procures nearly 73 lakh litres a day.

Officials also pointed out that Amul’s milk if procured from other states will take time to reach Bengaluru and it will be not fresh as opposed to Nandini’s milk which is freshly procured and supplied within 24 hours after milking.

(Edited by : Abhishek Jha)

First Published:Apr 7, 2023 3:02 PM IST

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