Even before the summer heat turns up to its full swing, the state of Karnataka, at least its milk and dairy market is on the boil.
As the country’s largest dairy cooperative Gujarat Cooperative Milk Marketing Federation (GCMMF) - popularly known by its brand Amul
attempts to enter the state, its peer from Bengaluru - the Karnataka Cooperative Milk Producers’ Federation (KMF) - is now in direct fight with the behemoth.
Both GCMMF and KMF are champions of their fields and have a strong consumer recall and loyal customer base through their mother brands Amul and Nandini (KMF), respectively.
They both find their origins from rural households in 1940s and 1950s and have, since, grown exponentially.
One of the key factors behind Nandini’s ability to serve its customers at such low price than Amul is its milk farmers are incentivised by the state government.
Founded in 1974 through grants from World Bank, KMF comes directly under the Karnataka’s Ministry of Cooperation.
Started in 2008 with Rs 2 per litre incentive to the farmer by the state government, today its milk farmers receive as much as Rs 6 per litre incentive.
This makes its milk and derivative products cheaper than most other larger cooperatives in the country.
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