In a move that has sparked widespread unrest among the dairy farming community in Karnataka, Gokul Dairy’s recent decision to slash milk prices has become a focal point of contention. This pivotal adjustment has not only stirred the pot in the dairy industry but has also highlighted the fierce competition between Gokul Dairy and the Karnataka Milk Federation’s (KMF) Nandini brand. With the price of 1 liter of milk plummeting from Rs. 40 to Rs. 30, dairy farmers are now grappling with a daily loss of Rs. 1.5 crore. The reduction, which affects approximately 40,000 liters of cow and buffalo milk supplied by farmers from the border taluks of Karnataka to Gokul Dairy, was implemented on February 1, but the farmers were left in the dark until February 11. This decision not only threatens the livelihood of these farmers but also raises questions about the future of dairy farming in the region.
The Stirring of the Dairy Dispute
The heart of the issue lies in the sudden price reduction of Rs 4.5 per liter for cow milk and Rs 2 per liter for buffalo milk, a move that has disproportionately affected the farmers in Karnataka’s border areas. The disparity in treatment between suppliers from Maharashtra and Karnataka has added fuel to the fire, with Karnataka farmers feeling shortchanged by Gokul Dairy’s decision. This has led to protests and a growing sense of betrayal among the farming community, who argue that their livelihoods are being undermined by corporate interests.
Competitive Tensions Rise
At the center of this dairy dilemma is the competition between Gokul Dairy and the Nandini brand of the Karnataka Milk Federation (KMF). Ubedullah Khan, MD of Belagavi Milk Union, a subsidiary of KMF, points out that Nandini has become the leading brand in terms of quality and price, offering Rs 5-6 more to farmers for their produce. This competitive edge has positioned Nandini as a formidable force in the dairy market, further complicating the dynamics between Gokul Dairy and its supplier farmers. The disparity in pricing and treatment has not only affected the farmers’ income but has also sparked a broader debate about fairness and equity in the agricultural sector.
The Farmers’ Plight
The decision by Gokul Dairy to reduce milk prices has had a profound impact on the farmers’ way of life. With dairy farming being a primary source of income for many in the region, the price cut translates to significant financial strain. The farmers, who were already navigating the challenges of the agricultural sector, find themselves in an even more precarious position. The reduction in income threatens not only their ability to sustain their livelihoods but also raises concerns about the long-term viability of dairy farming in the region. As the dispute continues, the farming community is calling for equitable treatment and transparency in pricing decisions, hoping for a resolution that safeguards their interests.
