According to the federation, selling milk at heavily discounted rates damages the perception of a product that requires significant investment and labor from producers. Cooperative leaders say such pricing strategies not only distort the market but also threaten the financial stability of dairy farmers who depend on fair milk prices for sustainable operations.

KMF, which markets dairy products under the well-known Nandini label, maintains that milk pricing should reflect the costs involved in production, processing and distribution. The organization claims that deep online discounts create unfair competition and could destabilize established dairy supply chains.

The dispute reflects broader tensions between traditional dairy cooperatives and rapidly expanding digital retail platforms in India. As online grocery sales grow, questions are emerging about how pricing policies affect agricultural producers, processors and rural economies that rely heavily on dairy income.