Flipkart's Rs 1 Milk Campaign Draws Strong Opposition from Dairy Cooperative
The Bangalore Cooperative Milk Union Ltd (Bamul) has raised serious concerns over Flipkart's recent Rs 1 milk offer, labeling it as detrimental to the livelihoods of dairy farmers across India. In a formal complaint, the cooperative has accused the quick commerce platform of engaging in predatory pricing tactics that could undermine the country's dairy sector.
Bamul President D K Suresh Condemns the Pricing Strategy
In a statement to PTI, Bamul president D K Suresh emphasized that milk should not be treated as a promotional tool. He stated, "Milk cannot be used as a marketing gimmick because it sustains millions of farmers who work tirelessly every day to meet the nation's dairy needs." Suresh, who is also the brother of D K Shivakumar and a former MP, has taken his criticism to social media, urging government intervention at both central and state levels.
On X, he posted, "Behind every litre of milk is the sweat, labour, and livelihood of our farmers. Predatory discounting by companies like Flipkart weakens India's dairy cooperatives and directly hurts farmer incomes." He further added that Flipkart's campaign, funded by investor discounts, undermines the dignity of farmers and the cooperative movement built over decades.
Formal Complaint Filed with Competition Commission of India
Bamul has approached the Competition Commission of India under Section 19(1)(a), alleging that Flipkart's pricing strategy is aimed at gaining market share at the expense of farmers. Suresh revealed that the cooperative has also written to Prime Minister Narendra Modi, seeking an investigation into the potential negative impacts on dairy farmers and cooperative institutions.
He expressed concerns about the use of public shareholder funds, citing reports that approximately Rs 2,000 crore has been spent on this initiative. Suresh warned, "Multinational companies are working against farmers' interests. They should clearly state in their advertisements how long they plan to sell milk at such low prices. Flipkart must withdraw from this move that harms the farming community."
Impact on Sales and Market Dynamics
Suresh disclosed that about 14.5 lakh liters of milk have already been sold under the scheme, with widespread advertisements circulating. He noted a significant drop in Bamul's sales, estimating a decline of 40,000-50,000 liters, and stressed the need to assess the duration of this impact. The cooperative is also investigating the source of the milk being sold, questioning how it can be priced at Re 1 when farmers are typically paid Rs 38-40 per litre.
Authorities are checking whether milk powder is being mixed in, with Suresh instructing laboratory tests on samples. He cautioned, "If cooperative institutions collapse, the direct impact will be on farmers." The ongoing examination aims to ensure transparency and protect the interests of the dairy farming community.
This controversy highlights the tension between aggressive e-commerce strategies and the sustainability of agricultural livelihoods, prompting calls for regulatory scrutiny and consumer awareness.
