Thiruvananthapuram, April 13 (IANS) The Kerala Cooperative Milk Marketing Federation (KCMMF), better known by its trade name Milma, has expressed serious concern over the tendency of some milk marketing associations to aggressively enter markets outside their states.
This according to Milam is a complete violation of the cooperative spirit on the basis of which the country’s dairy sector has been organized for the benefit of millions of dairy farmers.
Milma AKS President Mani said that recently, there has been a growing tendency on the part of some state milk marketing associations to market their core products outside their own domains.
Mani’s comments came after Amul announced in an announcement last week that it would sell its products online in Bengaluru, raising fears that the Karmataka milk brand Nandini would be taken over by the major milk company.
“This flagrantly violates the federal principles and cooperative spirit on which the cooperative dairy movement in the country was built and nurtured by pioneers like Tribhuvandas Patel and Verghese Kuriena. The move by Amul (Gujarat Milk Co-operative Federation) to promote its staple products in Karnataka met stiff resistance from local stakeholders.
But Karnataka Milk Federation (KMF) itself has recently opened outlets in parts of Kerala selling its Nandini brand of milk and other products. How is this justified? “It is a very immoral practice that undermines the basic purpose of the dairy movement in India and harms the interests of farmers,” Mani said, adding that such practices should be curtailed.
In accordance with the prevailing agreement and pleasant labor relations existing between dairy co-operatives, cross-border marketing of milk is to be avoided as it is a flagrant encroachment on the selling area of the respective state.
Mane said such practices from any side would threaten the spirit of the principles of cooperation that it had long nurtured by mutual consent and goodwill.
It was further suggested that the tendency to enter markets outside one’s domain by opening sales outlets or enticing franchisees should be avoided.
At first, they only sell value-added products, then they start selling liquid milk as well, and after that they start distributing the milk from shop to shop. Ultimately, they will seek to capture markets outside their region, taking advantage of country-to-country differences in prices and cost of production,” Mani said.
Although the cost of inputs to the dairy sector in Kerala is much higher compared to other states, Milma passes 83 percent of its sales to its dairy farmers through the cooperative societies within its network. Also, Mani said, the bulk of Milma’s surplus is given to farmers as an additional incentive to the price of milk and to subsidize livestock feed since the welfare of dairy farmers is their main concern.
“Given this, it is in the interest of the dairy cooperatives in the various states to refrain from plans to open outlets or to make franchising arrangements to sell liquid milk and other essential products outside their states,” Mani added.
– Jans
SG/arm
