Popular Karnataka dairy brand Nandini, which opened a few of its outlets in Kerala recently, has decided to put on hold its expansion plan in this southern state.
Kerala Minister for Animal Husbandry, Dairy Development, and Milk Cooperatives J Chinchurani said she has received information in this regard from the CEO of the Karnataka Milk Federation (KMF), which uses the trade name Nandini.
"Information has been received from the CEO that Nandini will not open new outlets in the state for the time being," the minister told reporters here.
Welcoming the KMF's decision, Chinchurani said this shift has come in the wake of change of government in Karnataka following the victory of the Congress.
She also said the state wanted the milk and milk products of the Kerala Cooperative Milk Marketing Federation's (KCMMF) Milma.
The CPI (M)-led LDF government in Kerala had recently expressed concern over the entry into the state of milk and dairy products from Karnataka's Nandini.
The Kerala government had filed a complaint with the National Dairy Development Board (NDDB) to resolve the issue.
Chinchurani had earlier said both Nandini and Milma are government-supported organisations, and therefore, when going to another state, that state's permission ought to have been taken.
In April this year, KCMMF termed as "unethical" the tendency of some state milk marketing federations to aggressively enter markets outside their respective states.
It was criticising the KMF's move to open its outlets in parts of Kerala to sell its Nandini brand of milk and other products.
Milma, back then, had said this involved a total breach of the cooperative spirit based on which the country's dairy sector has been organised for the benefit of millions of dairy farmers.
Such practices from any side will jeopardise the spirit of cooperative principles that have been nurtured for a long time by mutual consent and goodwill, it had said.