Amul not a competitor of Nandini, says MD Jayen Mehta amid row in Karnataka

Amul managing director Jayen Mehta said there is no question of any competition between Amul and Karnataka cooperative dairy brand Nandini

Amul Managing Director Jayen Mehta said on Monday that there is no competition between Amul and Karnataka Cooperative Dairy brand Nandini, according to a report in the Economic Times.

"Just like Amul is a cooperative of farmers in Gujarat, Nandini is a brand of the Karnataka Milk Federation (KMF), a cooperative of farmers in Karnataka. There is no question of any competition between two cooperatives and two farmer-owned organisations," Mehta was quoted as saying by the ET.

Mehta, in an interview with The Indian Express, had also said, "It is not about Amul versus Nandini, but Amul and Nandini. Both are farmer-owned cooperatives working on similar interests. We are not here to compete with Nandini".

"Amul and Nandini have a good relationship, and it will continue to be so," said Mehta.

Amul, which is backed by the Gujarat Cooperative Milk Marketing Federation (GCMMF), recently tweeted about its Bengaluru expansion plans. This sparked a political debate, with opposition parties and some locals charging that the move is part of a "conspiracy" to destroy the Nandini brand and the cooperative movement in the state.

Meanwhile, Mehta claimed that the company has always been supportive of dairy development in Karnataka.

"Amul fresh milk and curd will only be sold through e-commerce and quick-commerce platforms, which will be launched soon. We won't even sell these fresh-range products through our parlours in Bangalore," he told the Economic Times.

Mehta also noted that Amul ice cream has been produced at KMF's flagship facility in Bengaluru for more than ten years using milk that is purchased from Karnataka farmers. Amul has also purchased large quantities of cheddar cheese from KMF in the past, he said, adding, "So, Amul has always been supportive of the dairy development in Karnataka."

What is the Amul-Nandini controversy?

-- The Gujarat Cooperative Milk Marketing Federation recently announced plans to introduce Amul milk and curd in Bengaluru through quick commerce platforms.

-- The action was criticised by Karnataka's opposition leaders, who claimed that it would harm the interests of the KMF-owned Nandini brand.

-- The hoteliers in the state extended support to the Nandini brand because there is a Rs 11 difference between the two brands, with Amul milk priced at Rs 54 per litre and Nandini milk at Rs 43 per litre. They also came forward in support of Karnataka farmers.

-- KMF's Bangalore Milk Union Limited (BAMUL) claimed that the milk production in the state had increased amid the onset of summer. However, the Karnataka State Hotels' Association (KSHA) alleged that an ‘artificial scarcity’ of Nandini products has been created in favour of Amul's entry into Karnataka, as reported by PTI.

-- Siddaramaiah pointed out how Baroda Bank subsumed Vijaya Bank and claimed that ports and airports were handed over to Adani. And now it is Amul's turn.

BJP IT cell head Amit Malviya, on the other hand, said there is no merger between Amul and KMF and that Amul is not entering the state.

(With agency input)