The Karnataka Milk Federation (KMF) has been left with a bitter taste in the mouth after the Tirumala Tirupati Devasthanams (TTD) in Andhra Pradesh decided not to use the renowned Nandini ghee in the famous laddoos given as prasadam. For several years, Karnataka had been providing its tasty and wholesome ghee to make the TTD laddoos flavoursome and unique. This time around, caught in a price war, KMF authorities say that the TTD asked for tenders to be called at competitive rates. KMF officials said that Karnataka does not compromise on the quality and prices of its ghee and other milk products, so they were unable to apply.
This is the second time in two decades that KMF is not supplying to TTD. In 2018, a similar situation was seen when the Tirupati trust awarded the contract to the lowest bidder, and Nandini lost out. That year, TTD allotted the contract to supply ghee to a Marathwada-based dairy.
In 2019, Nandini was back as an integral part of the Tirupati laddoo after devotees complained that the taste and quality of the prasadam seemed to have been compromised.
This time around too, TTD called for tenders with competitive pricing to make the laddoos, but KMF was not ready to cater at the price quoted as it would mean affecting the rates given to the milk farmers.
In 2021-22, TTD floated a tender with a requirement of 2,050 metric tonnes of ghee. KMF was the third lowest bidder, quoting a price of Rs 392 per kg of ghee. TTD floats tenders twice a year, and each is valid for 6 months.
“Nandini is not short in supply and is capable of providing the required quantity to TTD. But at no point will we compromise on quality, and with that comes our competitive pricing,” explained MK Jagdish, managing director of KMF to News18. “The milk we procure from the farmers is of the highest quality, which is then converted into ghee. We add a very nominal price for the conversion process and ensure that our farmers get the best pricing for their produce.”
KMF is India’s second-largest cooperative milk federation after Amul.
“The tender for 2021-22 went to the lowest bidder, but despite that, TTD procured almost 345 metric tonnes at the rate we quoted, which is Rs 392 per kg,” Jagdish said.
The Karnataka cabinet recently announced that starting August 1, the price of Nandini milk will be hiked by Rs 3 as the producers were getting less than the average national rate.
According to deputy chief minister DK Shivakumar, the price per litre of milk in the state is one of the lowest. Toned milk is being sold between Rs 44 to 56 per litre in other states, while in Karnataka the price is Rs 42. Previously, a litre of milk cost Rs 39 per litre.
“This would enable the milk farmer in Karnataka to get a better price for the milk produced, which would be at par with other cooperatives across India,” Shivakumar said.
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