Explainer: All You Need to Know About ‘Amul Vs Nandini’ Battle in Poll-Bound Karnataka

The rural economy in poll-bound Karnataka is dependent on the home-grown brand and the Kannadiga pride is at the centre of what appears to be a corporate war. The ruling BJP may have to walk a tightrope to avoid the issue, which may well dominate the political narrative in the coming days, much like it did over the weekend.

What does Amul vs. Nandini fight entail? Why does the Gujarat dairy brand's entry into Bengaluru with its own line of milk and curd make the opposition furious?

It occurred months after Union Home Minister Amit Shah said that the two companies' collaboration might "do wonders" for the dairy industry. Amul, a dairy cooperative with headquarters in Gujarat, announced on April 5 that it will enter the Karnataka market to offer its milk and curd. Shah is also in charge of cooperation.

With just one month until the state assembly elections, the opposition parties, the Congress and the JD(S), have turned their guns on the governing Bharatiya Janata Party in the state, expressing concerns that the Rs 21,000 crore brand Nandini from the Karnataka Milk Federation (KMF) might be merged with Amul from Gujarat. State residents feel an emotional connection to Nandini.

In order to create "One Nation, One Amul" throughout the nation, the opposition claims that the BJP plans to combine the 49-year-old KMC's Nandini with its much older Anand Milk Union Limited (AMUL). The accusation has been categorically denied by the BJP.

Randeep Surjewala, general secretary of the AICC and head of the Karnataka party, claimed that the BJP was attempting to "sell off" Nandini. H D Kumaraswamy, a former chief minister, also criticized the state government for this. The JD(S) second-in-command Kumaraswamy claimed Amul has this "evil mindset" to eliminate its lone rival Nandini in Karnataka alone.

The official stance of the BJP-led federal government is "One Country, One Amul, One Milk, and One Gujarat," he stated.

According to Chief Minister Basavaraj Bommai, the administration is unambiguous on the Amul issue. Bommai claimed that Amul's arrival into Karnataka had been politicized by Congress, adding, "We have complete clarity over Amul. One international brand is Nandini. Not just in Karnataka, though. In addition, we have helped Nandini become more well-known in other states. The Chief Minister emphasized that numerous significant KMF dairies in the state were founded while the BJP was in power.

A liter of Nandini's toned milk costs Rs 39, whereas an equivalent amount of Amul costs Rs 52.

The Explainer:

• What caused the controversy around Amul's decision to sell its milk and curd in Karnataka? Amit Shah stated that "cooperation between Amul and Nandini may accomplish wonders in the dairy sector" at the mega-opening dairy in Mandya in December of last year. It was described as a scheme to combine Nandini and Gujarat by the opposition, which the BJP-led government in Karnataka dismissed. The Food Safety and Standards Authority of India (FSSAI) issued a directive in the final week of March of this year to write "Dahi" in Hindi on curd packages in addition to the local nomenclature, which the opposition parties criticized as an imposition of the language.

• Did Amul previously operate in Karnataka? For a very long time, Amul had been marketing its butter, ghee, yoghurt, and ice cream in the state. Other dairy companies selling bottled milk and curd besides Amul include Dodla and Heritage (Telangana), Tirumala, Arokya and Milky Mist (TN), Namdhari and Akshayakalpa, among others (Karnataka).

• What worries the opposition? As soon as its milk and curd are permitted for sale, the opposition parties claim the government would restrict the supply of Nandini products, lessening their ability to compete with Amul and forcing consumers to buy Amul goods.

• What justifies the BJP-led administration? It has denied the accusation and stated that there are no plans to combine Nandini and Amul. The Congress and the JD(S), according to Chief Minister Basavaraj Bommai, are allegedly attempting to mislead the public and instil fear among them. He claimed that during the current saffron party administration, milk output has increased.

• Has milk production fallen off? The Bangalore Milk Union Limited (BAMUL), a division of KMF, acknowledged that production had decreased due to the summer, as it does each year. From 90 lakh litres per day to 75 lakh litres per day, milk production has decreased.

• What is Nandini's company's size? According to BAMUL director P Nagaraju, Nandini is a Rs 21,000 crore brand owned by the KMF and is the second-largest cooperative institution after Amul. He continues by saying that although the KMF produces more than 90 lakh litres of milk each day, Amul produces 1.8 crore litres daily.

• Why does Nandini dominate its market? According to Nagaraju, milk prices are reasonable, the quality is top-notch with no adulteration, there is a strong network of milk producers and a milk union, and the public takes pride in the goods.

• Where else except Karnataka does KMF offer its goods? Andhra Pradesh, Tamil Nadu, Telangana, and Maharashtra all sell Nandini items. Also, some of its goods are exported.

• What is wrong with Amul operating in Karnataka if Nandini may sell its goods in other states? Nagaraju claims that since Amul joined the market, Maharashtra State Cooperative Milk Federation Limited, commonly known as Mahanand Dairy, has not been doing well financially. Similarly to this, Telangana and Andhra Pradesh's cooperative milk federations did not see considerable growth.

• What makes avoiding this controversy so important for the Karnataka BJP? Because the rural economy is dependent on KMF and Kannadigas have strong emotional ties to the Nandini brand, it is imperative for the ruling BJP to come out on top after the May 10 assembly elections in order to maintain power. It has the potential to damage the saffron party's chances of winning the election, and Congress and the JD(S) are doing all in their power to make it a key campaign issue.

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