Why Amul Can't Beat Nandini: Karnataka's ₹1,200-cr Incentive
Financial Express Mumbai|April 10, 2023
FOR ALL THE political brouhaha over the "entry" of Amul into Karnataka's milk market - amplified in the runup to the Assembly elections the economic reality is simple: No dairy concern, including the Gujarat Cooperative Milk Marketing Federation (GCMMF), is in a position to take on the Karnataka Cooperative Milk Producers' Federation (KMF) today.
Harish Damodaran & Sanath Prasad
Why Amul Can't Beat Nandini: Karnataka's ₹1,200-cr Incentive

The reason is price. KMF milk, marketed under the Nandini brand as opposed to GCMMF's Amul, is the cheapest in India. Consumers in Bengaluru currently pay only ₹39 for a litre of Nandini-toned milk containing 3% fat and 8.5% SNF (solids-not-fat). Compare this with the ₹50 per litre price for Amul-toned milk in Delhi and ₹52 per litre in Gujarat.

The same goes for full-cream milk having 6% fat and 9% SNF, where GCMMF is charging 66 a litre in the national capital region and ₹64 a litre in Gujarat. Till early March, this milk from Nandini was retailing at just ₹50 for one litre and ₹24 for 500 ml. KMF has since hiked the price indirectly by charging the same for smaller packs of 900 ml and 450 ml respectively.

But even after factoring in "shrinkflation", the effective price of ₹53-56 per litre for Nandini full-cream milk works out way below Amul's. The maximum retail price of Nandini curd is also only ₹47 per kg, against ₹30 for a 450-gm pouch (₹66-67/kg) of Amul's.

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