The Kerala Cooperative Milk Marketing Federation or KCMMF has expressed worry about the inclination of some state milk marketing federations to aggressively enter markets outside of their home states in response to the action.
Ironically, the Kerala Cooperative Milk Marketing Federation (KCMMF), which markets the Milma brand, is now opposing Nandini from the Karnataka Milk Federation (KMF) from entering the state. Nandini, a dairy product owned by the state of Karnataka, established two stores in Kerala. The local cooperative milk marketing group, however, has criticized the action.
This action coincides with the continuing debate over Amul Company, which has been banned in Karnataka because of concerns that the brand may harm KMF’s Nandini, a brand created by farmers.
The KCMMF has expressed opposition to the proposal, stating that it is concerned about some state milk marketing federations’ propensity to “aggressively enter markets outside of their respective states.”
The chairman of Milma calls the practice unethical.
Kerala’s personal regional brand In a statement, the chairman of Milma, KS Mani, referred to the practice as “unethical”. Avoid the inclination to establish sales facilities or recruit franchisees in order to explore areas outside of your area of expertise. They began by selling only value-added products, expanded to selling liquid milk, and then started distributing milk from shop to shop.
Mani said, “The move of Amul (Gujarat Milk Co-operative Federation) to promote its staple products in Karnataka has been met with strong resistance from the stakeholders in that state. But Karnataka Milk Marketing Federation recently opened its outlets in parts of Kerala to sell its Nandini brand of milk and other products. How could this be justified? Whoever does this, it is a highly unethical practice which defeats the very purpose of India’s dairy movement and harms the interests of the farmers.”
“Of late, there has been a growing tendency on the part of some of the state milk marketing federations to market their staple products outside their respective domain. This grossly violates the federal principles and cooperative spirit based on which the country’s dairy co-operative movement has been built and nurtured by pioneers like Tribhuvandas Patel and Dr. Verghese Kurien”, Mani said.
Milma criticized the Karnataka Milk Federation for setting up shops in several areas of Kerala, claiming that this represented a complete violation of the cooperative principles on which the nation’s dairy industry was set up for the benefit of millions of dairy farmers.
Additionally, he cited a contract that said cross-border milk marketing constituted “blatant encroachment of the sale area of the respective state.” Cross-border marketing of liquid milk is to be avoided as it amounts to a flagrant incursion of the sale territory of the respective state, in accordance with the current agreement and cordial business relations existing among Milk Co-operatives. The spirit of cooperative ideals, which have been fostered for a long time by mutual consent and kindness, will be jeopardized by such practices, he stated.
