- As you are aware, Indian political leadership representing various parties is always on the lookout for any issues that will ostensibly allow them to garner attention, primetime, and potential consolidation of votes. It has been proved time and again that Indian political leaders never let go of an opportunity to not only corner the ruling dispensation with potentially damaging issues to further their electoral chances but also attempt to offset any counter moves/maneuvers to pin down the retort. Election campaigns in India are already rife with complex caste equations that constantly draw more attention. Add to the mix the emotionally charged issues like ethnicity, linguistics, and religion, you have a recipe for whipping up even more frenzy into the scene.
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- All eyes are glued to an interesting electoral battle that is underway in Karnataka which goes to poll on the 10th People following the ongoing one-upmanship would have noticed how the political parties are latching onto matters of inconsequence just to make themselves seen and heard for safeguarding the interests of the state. The already potent election campaign brew in Karnataka has just been supplemented with milk. The proximate cause is that Amul took to social media to announce online deliveries in Bengaluru. This advertising was seen in the light of Amit Shah’s statement in December that collaboration between Amul and Nandini might be extremely beneficial. And the spin doctors were at it in no time.
- The Union Home Minister was referring to the umbrella brands of the Gujarat Cooperative Milk Marketing Federation and Karnataka Milk Federation. To make sense of it, consider India’s unique milk political economy. Note that India is the world’s largest milk producer, with 222.1 million tonnes of production in 2021-22. But it’s witnessed a slowdown in output growth recently. In the three years of 2021-22, the average annual growth rate was 5.5%. In each of the preceding five years, output grew at over 6%. Preliminary indications are that output was stagnant in 2022-23. Almost half the milk produced is consumed locally. The rest enters the urban market, which is the growth area.
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- GOI information shows that milk cooperatives and private players’ share of the liquid milk market are expected to touch 54% by 2026, from 41% now. This is the commercial backdrop to the battle between Amul and Nandini. Of the two big milk co-ops, GCMMF is the bigger. Care Ratings estimates it has a market share of 40-73% in pouched milk and different milk products. KMF, though, offers stiff competition. In 2020-21, interstate sales accounted for more than 15% of its revenue. Co-ops impart a unique dimension to milk and milk product markets. Mind you, it’s unlikely milk will be more important than caste and corruption allegations. Did someone mention development? What is it? Indeed, our political narrative needs an overhaul. Will it happen? Unlikely.
