Deep e-commerce discounting fuels tensions as producers warn of price distortion and income pressure.
Dairy farmers in Karnataka are raising strong concerns over aggressive discounting strategies by e-commerce platforms, where milk has reportedly been sold for as little as ₹1. Producers argue that such pricing undermines the value of milk and distorts the market.
The discount-led campaigns are being driven by online retailers seeking to attract consumers, but farmers say the practice creates unrealistic price expectations. This disconnect between retail promotions and farmgate realities is increasing pressure on producer incomes.
Industry stakeholders warn that sustained discounting could erode the financial viability of dairy farming. Farmers fear that if such practices continue, they may be forced to absorb losses or face reduced procurement prices from processors.
The issue highlights broader tensions within the dairy value chain, where digital retail growth is reshaping distribution and pricing dynamics. While e-commerce expands consumer access, it is also introducing new challenges around price transparency and fairness.
Calls are growing for regulatory oversight to address the impact of deep discounting on agricultural commodities. Ensuring a balanced approach that protects farmers while supporting market innovation is emerging as a key priority for the sector.
Source: Business Today – https://www.businesstoday.in/amp/india/story/milk-for-re-1-why-karnataka-farmers-are-upset-with-e-commerce-discount-wars-520976-2026-03-17
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