Milk for Re 1? Why Karnataka farmers are upset with e-commerce discount wars

A promotional campaign offering milk for Re 1 on e-commerce platforms has triggered concern among Karnataka’s dairy cooperative leaders, who say such discounting risks  farmer incomes.

Bangalore Milk Union Ltd (BAMUL) president D K Suresh, a former Member of Parliament and the brother of Karnataka Deputy Chief Minister D K Shivakumar, on Saturday accused e-commerce major Flipkart of selling milk for Re 1 through “investor-funded discount campaigns,” saying the strategy undermines the value of a product tied directly to farmers’ livelihoods.

Suresh said he has lodged a complaint before the Competition Commission of India (CCI) and also written to Prime Minister Narendra Modi seeking an investigation into what he described as “predatory pricing” by the platform and its possible impact on dairy farmers and cooperative institutions.

 

 

 

Flipkart, however, said the discounted pricing was part of limited promotional campaigns and does not affect the price paid to suppliers or farmers.

“Prices of products on the Flipkart marketplace are determined by individual sellers. All dairy partners and sellers continue to receive their full agreed price for the products they supply, and farmer procurement prices are not impacted in any way,” a Flipkart spokesperson said, as quoted by the agency.

The company added that it periodically runs limited promotional campaigns on select products, often in partnership with banking partners, to improve customer value.

Adding further Flipkart  assured  that it remains committed to working with farmers, cooperatives and sellers across India to expand market access and support their growth.

 

‘Milk is not a Re 1 flash deal’

Suresh, said the issue goes beyond a single promotional campaign.

Taking this issue to social media platform X, he wrote, “Milk is not a Re 1 flash deal. It is the livelihood of millions of farmers.”

“Behind every litre of milk is the sweat, labour, and livelihood of our farmers. Predatory discounting by companies like Flipkart weakens India's dairy cooperatives and hurts farmer incomes.”

He urged both the central and state governments to step in and protect farmers and the cooperative network that collects and distributes milk across the state.

In his another post, he said:

“Milk is not a marketing gimmick. It is the livelihood of millions of dairy farmers who work every day to feed this nation.”

 

 

“Flipkart is selling milk for Re 1 through investor-funded discount campaigns and is undermining the dignity of farmers and the cooperative movement built over decades.”

He also urged consumers to support farmers, cooperatives and Nandini, the dairy brand owned by the Karnataka Milk Federation (KMF).

 

Complaint before the competition regulator

Speaking to reporters on Saturday, Suresh said the matter would be taken to the Competition Commission of India under Section 19(1)(a) over the alleged sale of one litre of milk for Re 1.

He warned such deep discounting, if sustained, could disrupt the dairy market and affect producers.

“Around Rs 2,000 crore has reportedly been spent on this initiative. It is not appropriate to misuse public shareholders' money in this manner,” he said.

Suresh also warned that aggressive pricing strategies could weaken cooperative institutions that have supported farmers since the pre-Independence period.

“Multinational companies are working against farmers' interests. They should clearly state in their advertisements how long they will sell milk at such low prices. Flipkart must withdraw from this move that harms the farming community,” he told the reporters.

 

Impact on cooperative sales

According to Suresh, 14.5 lakh litres of milk have already been sold under the promotional scheme and advertisements promoting the offer have been widely circulated.

“Public money is being invested to attract customers. The company should disclose how long it plans to sell milk at this price,” he said.

When asked about its impact on cooperative brands, Suresh said BAMUL’s sales had dropped by around 40,000–50,000 litres, though the duration of the decline was still being assessed.

“BAMUL's sales have dropped by about 40,000-50,000 litres. We need to ascertain how long this decline has continued,” he added.

Adding further the former MP said that the source of the milk being sold at such low prices also needs scrutiny.

“How can they sell it for Re 1? We need to find out from whom they are purchasing the milk and where it is coming from,” the union president asked.

Farmers are currently paid Rs 38-40 per litre for milk, he noted, raising questions about how such a steep discount could be sustained.

Suresh also said officials are examining whether milk powder could be mixed in the supply, and samples have been sought for testing.

“We are also checking whether milk powder is being mixed. I have asked for samples and instructed that they be tested in laboratories. If cooperative institutions collapse, the direct impact will be on farmers,” he said.

 

(With inputs from PTI)