TDP Alleges Ghee Cartel Secured TTD Contracts, Demands Investigation into Procurement Practices
Source: DairyNews.today
The Telugu Desam Party (TDP) has raised allegations of cartel formation among ghee suppliers during the previous YSRCP regime, accusing them of manipulating prices to secure supply contracts for Tirumala Tirupati Devasthanams (TTD). With milk prices on the rise nationwide, the TDP has questioned the volatility in ghee prices, which have seen fluctuations of nearly 20 percent in recent years.
TDP spokesperson Neelayapalem Vijay Kumar asserted that, under the YSRCP rule, only a limited number of companies participated in TTD’s reverse tendering process, securing lucrative contracts through what he described as a “circulatory allocation” scheme. Kumar claimed that during this period, ghee suppliers colluded with TTD officials, rotating the lowest bid position to ensure that the same group of companies won successive tenders. He alleged that approximately ₹150 crore changed hands in the form of commissions as part of this arrangement.
Vijay Kumar detailed the process, explaining how the company that emerged as the lowest bidder (L1) in one tender would intentionally bid higher in subsequent tenders, allowing a different company to win the contract. He noted that most of the winning companies originated fr om Maharashtra, Rajasthan, Uttar Pradesh, and Uttarakhand, and questioned why companies and cooperatives from the Telugu states or other parts of South India were largely absent or withdrew from the reverse tendering process.
In his remarks, Kumar cited the example of Vaishnavi Dairy, an Andhra Pradesh-based supplier, which consistently won tenders over the last five years, offering prices comparable to those of northern suppliers. Kumar also highlighted significant price differences across various tenders, revealing instances wh ere companies dramatically reduced their bid amounts. He pointed out that Premier Agri Foods, based in Bareilly, submitted a first bid of ₹475 per kg in January 2022 but later revised its reverse bid to ₹329 per kg by June—a reduction of ₹137 within a few months.
“This kind of price volatility is unusual for ghee, which is not a speculative commodity,” Kumar stated, adding, “When milk prices are steadily increasing, how can these companies afford to lower their ghee prices unless there is some form of misconduct involved?”
The TDP is calling for the newly established Special Investigation Team (SIT), directed by the Supreme Court, to examine not only the alleged cartel activities in ghee procurement but also the sourcing of other materials used in TTD’s prasadams, such as laddu. Kumar emphasized that a thorough investigation is needed to ensure transparency in TTD's procurement processes, protect local suppliers, and safeguard public trust in one of India’s most revered religious institutions.
Vijay Kumar detailed the process, explaining how the company that emerged as the lowest bidder (L1) in one tender would intentionally bid higher in subsequent tenders, allowing a different company to win the contract. He noted that most of the winning companies originated fr om Maharashtra, Rajasthan, Uttar Pradesh, and Uttarakhand, and questioned why companies and cooperatives from the Telugu states or other parts of South India were largely absent or withdrew from the reverse tendering process.
In his remarks, Kumar cited the example of Vaishnavi Dairy, an Andhra Pradesh-based supplier, which consistently won tenders over the last five years, offering prices comparable to those of northern suppliers. Kumar also highlighted significant price differences across various tenders, revealing instances wh ere companies dramatically reduced their bid amounts. He pointed out that Premier Agri Foods, based in Bareilly, submitted a first bid of ₹475 per kg in January 2022 but later revised its reverse bid to ₹329 per kg by June—a reduction of ₹137 within a few months.
“This kind of price volatility is unusual for ghee, which is not a speculative commodity,” Kumar stated, adding, “When milk prices are steadily increasing, how can these companies afford to lower their ghee prices unless there is some form of misconduct involved?”
The TDP is calling for the newly established Special Investigation Team (SIT), directed by the Supreme Court, to examine not only the alleged cartel activities in ghee procurement but also the sourcing of other materials used in TTD’s prasadams, such as laddu. Kumar emphasized that a thorough investigation is needed to ensure transparency in TTD's procurement processes, protect local suppliers, and safeguard public trust in one of India’s most revered religious institutions.
