Karnataka's own dairy brand Nandini expanded to Kerala as it opened two outlets in the southern state. The move, however, drew flak from the local cooperative milk marketing federation.
The federation objected to the move saying that it is concerned over the tendency of some state milk marketing federations to "aggressively enter markets outside their respective states".
"...holding that this involved total breach of co-operative spirit based on which the country's dairy sector has been organised for the benefit of millions of dairy farmers," it said.
Kerala's own local brand Milma's chairman KS Mani, in a statement, called the practice "unethical".
"The move of Amul (Gujarat Milk Co-operative Federation) to promote its staple products in Karnataka has been met with strong resistance from the stake-holders in that state. But Karnataka Milk Marketing Federation recently opened its outlets in parts of Kerala to sell its Nandini brand of milk and other products. How could this be justified? Whoever does this, it is a highly unethical practice which defeats the very purpose of India's dairy movement and harms the interests of the farmers," he said.
Mani further cited an agreement stating that cross-border milk marketing amounts to "blatant encroachment of the sale area of the respective state".
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"As per the prevailing agreement and courteous business relations existing among Milk Co-operatives, cross-border marketing of liquid milk shall be avoided as it amounts to blatant encroachment of the sale area of the respective state. Such practices from any side will jeopardise the spirit of co-operative principles that have been nurtured for a long by mutual consent and goodwill," he said.
Notably, Karnataka has been in the throes of an Amul vs Nandini row, with the Opposition -- Congress and pro-Kannada groups lashing out at the BJP government for allowing Amul to sell fresh milk and curd in Bengaluru, alleging that it would hurt the business of the local brand Nandini.
The row erupted after Union Home Minister Amit Shah in December last year called for cooperation between the cooperative-model-based dairy companies -- Amul and Nandini.
The Opposition has alleged that the state government intends to merge Amul with Nandini, an allegation with the ruling BJP has dismissed.
Chief Minister Basavaraj Bommai had said, "Nandini will become the number one brand in the country but there must be no politics over Amul.
