Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

What is the Amul versus KMF controversy?


From UPSC perspective, the following things are important :

Prelims level: Anand Model

Mains level: India's dairy sector


Central idea

  • Amul, the country’s largest dairy player, announced on April 5 that it would supply milk and curd through e-commerce portals in Bengaluru.
  • The announcement was met with opposition from Kannadigas, who saw it as an attempt to threaten the iconic Nandini milk brand of the Karnataka Milk Federation (KMF).

Political Controversy

  • The Amul vs. KMF row turned into a political tool in poll-bound Karnataka.
  • Dissenting sections expressed fears that Amul would eat into the market of Nandini and pose a threat to its business in the state.
  • The ruling government was accused of attempting to privatize the milk sector and “finish off” a home-grown product.

A quick backgrounder

  • Both Amul Dairy and KMF are successful examples of adopting the three-tiered ‘Anand’ model of dairy procurement.
  • Farmers supply milk to dairy cooperatives at the village level, which is then procured by milk unions at the district and state levels.
  • There are 16 district milk unions in Karnataka supplying milk to the dairy cooperatives.
  • KMF provides competitive prices to dairy farmers.
  • KMF corners most of the market share for surplus milk provided by farmers in the state.

Anand Model of Dairy Procurement

  • It is a system of milk collection and distribution pioneered by the Amul cooperative in Anand, Gujarat, India.
  • This model has revolutionized the dairy industry in India by providing a fair price to dairy farmers, eliminating the need for middlemen, and improving the quality of milk.
  • Under the Anand model, farmers are organized into dairy cooperatives, which collect and market their milk.
  • The cooperatives are managed by the farmers themselves and are supported by the infrastructure and marketing expertise of the Amul cooperative.
  • The farmers are paid a fair price for their milk, which is based on its quality and quantity, and they receive regular payments for their milk.

Why are people protesting?

  • Overpricing: The pricing difference between Amul’s toned milk and Nandini’s toned milk was highlighted, with Amul’s milk priced at ₹54 per litre and Nandini’s at ₹39 per litre.
  • Unhealthy competition: KMF’s online presence in the state could create unhealthy competition with Amul’s online presence, despite the pricing difference, according to the federation.

The turf war

  • The KMF is the second-largest milk cooperative in India after Amul.
  • While Amul and KMF compete in neutral regions like Mumbai, Nagpur, Goa, Hyderabad, and Chennai markets, they have not clashed on home turfs.
  • Karnataka is a milk-excess market that meets the needs of the state and exports surplus to other states.
  • KMF plans to write to the National Dairy Development Board, requesting it to direct Amul not to venture into the Bengaluru market and concentrate on milk-deficient states.

Clarification by Amul

  • Amul clarified that it was launching its fresh milk and curd only for a niche market through e-commerce channels and not through the mass market distribution network.


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