
Karnataka dairy cooperative files complaint, warning ultra-discounted online milk sales could disrupt the dairy value chain.
The Bangalore Milk Union Limited (Bamul) has filed a formal complaint against Flipkart over a promotional campaign offering milk for ₹1. The cooperative argues that such deep discounting on a staple dairy product could destabilize the market and undermine the economics of milk production and distribution.
According to the complaint, the ultra-low pricing strategy raises concerns about unfair trade practices and the potential distortion of the dairy supply chain. Bamul, which markets products under the Nandini label, maintains that aggressive online discounts could mislead consumers about the real value of milk and pressure traditional dairy networks.
The cooperative has approached regulators seeking intervention, warning that extreme promotional pricing could have long-term implications for dairy farmers and milk processors. Cooperatives argue that milk pricing must reflect the costs of procurement, processing, logistics, and farmer payments.
Industry observers say the dispute highlights growing tensions between established dairy cooperatives and digital retail platforms. As e-commerce companies expand into grocery and fresh food categories, pricing strategies and promotional campaigns are increasingly scrutinized by agricultural supply chain stakeholders.
For the dairy sector, the case underscores broader questions about fair competition in modern food retail. Ensuring sustainable pricing for staple products like milk remains critical for protecting farmer livelihoods while maintaining transparency for consumers in rapidly evolving distribution channels.
Source: The Economic Times – https://economictimes.indiatimes.com/tech/technology/karnataka-dairy-cooperative-bamul-files-complaint-against-flipkarts-rs-1-milk-offer/articleshow/129577304.cms?from=mdr
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