A dispute has emerged in India’s dairy sector after the Bangalore Cooperative Milk Union (Bamul) filed a complaint with the Competition Commission of India (CCI) over a promotional campaign by the e-commerce platform Flipkart, where milk was reportedly sold for ₹1 per litre.
Bamul alleges the campaign could undermine dairy cooperatives and harm farmers’ livelihoods, while Flipkart says it was only a short-term promotional offer that does not affect milk procurement prices.
Allegations by Bamul
Bamul President D. K. Suresh accused Flipkart of engaging in predatory pricing through investor-funded discounts.
Key concerns raised by the cooperative include:
- Selling milk for ₹1 per litre, far below the actual cost of production
- Potential damage to the cooperative dairy ecosystem
- Possible decline in milk sales for cooperatives
Suresh said milk should not be treated as a marketing gimmick.“Behind every litre of milk is the labour and livelihood of farmers,” he stated.
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According to Bamul:
- Around 14.5 lakh litres of milk were reportedly sold under the campaign
- Cooperative sales have dropped by 40,000–50,000 litres per day since the promotion began
- Farmers currently receive about ₹38–40 per litre for milk procurement
Bamul has also written to Narendra Modi, urging the central government to investigate the issue.
Flipkart’s Response
Flipkart, which is owned by Walmart, clarified that the offer was a limited promotional campaign run occasionally to increase customer engagement.
The company said:
- Prices on the marketplace are determined by individual sellers
- Dairy partners continue to receive the full agreed price for their products
- Farmer procurement prices remain unaffected
Flipkart added that it continues to work with farmers, cooperatives, and sellers to expand market access.
Investigation Under Competition Law
Bamul has approached the CCI under Section 19(1)(a) of the Competition Act, 2002, seeking an inquiry into whether the pricing strategy constitutes predatory pricing or unfair market practices.
The cooperative is also examining:
- Where the milk was sourced from
- Whether milk powder or other ingredients were used
- Possible quality and authenticity issues
Samples have reportedly been requested for laboratory testing.
Role of Bamul and the Nandini Brand
The Bangalore Cooperative Milk Union is a major unit of the Karnataka Cooperative Milk Federation, which markets dairy products under the Nandini brand.
The cooperative model supports millions of dairy farmers, making milk pricing a sensitive issue in the sector.
Why This Issue Matters
The dispute highlights a broader tension between digital retail platforms and traditional cooperative dairy systems.
Key concerns include:
- Predatory discounting in essential food commodities
- Impact of deep discounts on farmer income
- Protection of cooperative institutions built over decades
Milk pricing is particularly sensitive because dairy provides daily income to millions of farmers in India.
Industry insight:
In dairy economics, selling below cost through investor-funded discounts can disrupt market balance because cooperatives must maintain stable procurement prices to protect farmer livelihoods.
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