A major controversy has erupted in India’s dairy sector after Flipkart reportedly sold milk for just ₹1 per litre as part of a promotional campaign. The move triggered strong criticism from the Bangalore Milk Union Ltd (BAMUL), which warned that such deep discounting could harm dairy farmers and the cooperative ecosystem built over decades.
The issue highlights growing tension between aggressive e-commerce discount strategies and traditional agricultural supply chains that support millions of rural livelihoods.
Why BAMUL Opposed the ₹1 Milk Sale
BAMUL President D. K. Suresh publicly criticized the promotion, arguing that milk is not a product that should be used as a marketing gimmick. According to him, selling milk for such an extremely low price undermines the hard work of farmers and weakens the cooperative dairy model.
He emphasized that millions of farmers depend on fair milk prices to sustain their livelihood. Deep discounting, he said, risks sending a signal that milk is a low-value product, which could negatively affect the entire dairy supply chain.
Complaint Filed With Competition Commission of India
BAMUL has taken the issue further by filing a complaint with the Competition Commission of India (CCI). The cooperative alleges that the ₹1 milk campaign amounts to predatory pricing designed to capture market share.
According to the complaint, dairy farmers in Karnataka typically receive around ₹38–₹40 per litre for milk procurement, making it economically impossible to sell milk at ₹1 without heavy investor subsidies or promotional spending.
The cooperative has also written to Prime Minister Narendra Modi, urging authorities to investigate the pricing practice and protect the interests of dairy farmers.
Flipkart Responds to the Allegations
Flipkart has defended the campaign, stating that the ₹1 milk sale was a limited promotional offer designed to provide additional value to customers. The company clarified that prices on its marketplace are determined by individual sellers and that such promotions do not affect the payments made to dairy suppliers or farmers.
The e-commerce platform also said it remains committed to supporting farmers and sellers while expanding digital market access.
Bigger Concerns for India’s Dairy Sector
Industry observers say the dispute reflects a broader challenge in India’s retail ecosystem. Quick-commerce and e-commerce platforms often rely on deep discounts funded by investors to attract customers.
However, in sectors like dairy—where millions of small farmers depend on stable pricing—such aggressive discounting can potentially destabilize markets and hurt cooperative institutions.
The case could also become a key test for India’s competition regulators, especially regarding how far online marketplaces can go in discounting essential agricultural products.
