BAMUL Writes to PM Modi, CCI Over ₹1 Milk Discounts by Quick Commerce Apps

BAMUL has written to PM Narendra Modi and the Competition Commission of India seeking an investigation into quick commerce platforms offering milk for as low as ₹1 per litre. The union warns that deep discounts could disrupt the dairy supply chain and hurt farmers.

The Bangalore Urban, Rural and Ramanagara District Cooperative Milk Producers' Societies' Union Limited (BAMUL) has raised serious concerns over steep discounts being offered by quick commerce platforms on milk, dairy products and other farm goods. The cooperative union has written to the Competition Commission of India (CCI) and Prime Minister Narendra Modi, urging authorities to investigate what it describes as potentially disruptive pricing practices in the dairy market.

According to BAMUL, some quick commerce platforms are offering extremely low prices on essential dairy products as part of aggressive promotional campaigns. In certain instances, milk has reportedly been sold for as little as ₹1 per litre, a pricing strategy the union believes could severely distort the existing supply chain and threaten the long-term sustainability of the cooperative dairy sector.

A Threat to Economic Stability

In his letter to the competition watchdog, BAMUL President D.K. Suresh warned that such deep discounting strategies could significantly disrupt the traditional dairy supply chain and adversely affect rural livelihoods.

He noted that aggressive promotional campaigns could weaken the financial stability of milk cooperatives, which operate on a model designed to ensure guaranteed procurement and stable prices for farmers. Any disruption to this system, he said, would directly impact thousands of dairy farmers who depend on cooperatives for their income.

The letter also highlighted that such pricing practices could harm small neighbourhood retailers, many of whom rely heavily on the daily sale of milk and dairy products as a key source of revenue.

Concern Over Possible Misuse of Market Power

Suresh further urged the Competition Commission of India to examine whether these pricing strategies amount to predatory pricing or represent a misuse of market dominance by large digital commerce platforms.

According to BAMUL, it is crucial to safeguard the stability of India’s dairy ecosystem, which plays a vital role in supporting rural economies and ensuring fair prices for farmers.

The cooperative emphasised that India’s dairy sector, built on the strength of cooperative institutions, has enabled the country to emerge as one of the world’s largest milk producers, benefiting millions of rural families.