Bengaluru Milk Union Alleges Predatory Pricing by Quick-Commerce Platforms
The Bangalore Urban, Rural and Ramanagara District Cooperative Milk Producers' Societies' Union Ltd, commonly known as Bamul, has taken a significant step by formally writing to the Competition Commission of India (CCI) and Prime Minister Narendra Modi. The union is urgently requesting a thorough investigation into what it describes as steep and unsustainable discounts being offered on milk, dairy products, and other farmer-produced commodities by various quick-commerce platforms operating in the region.
Concerns Over Re 1 Per Litre Milk Sales
In a detailed letter addressed to the competition regulator, Bamul president DK Suresh highlighted alarming pricing strategies observed in the market. He specifically pointed out that some quick-commerce platforms have initiated sales of milk at an astonishingly low price of just Re 1 per litre. Suresh emphasized that such aggressive discount-driven campaigns pose a severe threat to the traditional dairy supply chain and could have devastating consequences for rural livelihoods across Karnataka.
The union president warned that these pricing tactics could fundamentally disrupt the financial stability of established milk cooperatives. He explained that cooperatives play a vital role in providing assured procurement and stable prices to farmers, which form the backbone of their income security. By undermining this model, quick-commerce platforms risk destabilizing the entire ecosystem that supports millions of dairy farming households.
Impact on Small Retailers and Broader Ecosystem
Beyond the direct impact on farmers, Bamul's letter also raised concerns about thousands of small retailers who depend heavily on dairy products as a major component of their daily sales. These neighborhood shops and local vendors could face significant economic hardship if forced to compete with platforms selling milk at virtually giveaway prices.
Suresh has formally urged the Competition Commission of India to examine whether such campaigns constitute predatory pricing or an abuse of dominant position by digital commerce entities. The union argues that protecting the stability of India's dairy ecosystem is not just an economic issue but a social imperative, given that dairy farming supports millions of rural households and has been central to India's emergence as one of the world's largest milk producers.
Call for Regulatory Intervention
The Bamul letter represents a growing concern among traditional agricultural cooperatives about the disruptive impact of digital commerce platforms on established supply chains. By reaching out directly to both the CCI and the Prime Minister's Office, the union is seeking immediate regulatory intervention to ensure fair competition practices in the dairy sector.
This development comes at a time when quick-commerce platforms are expanding rapidly across Indian cities, often using deep discounts as a customer acquisition strategy. Bamul's complaint highlights the potential collateral damage such strategies can inflict on traditional agricultural economies and calls for a balanced approach that protects both consumer interests and producer livelihoods.
