Tirupati laddu row: TDP claims cartel formation and Rs 150 crore in commissions from ghee procurement | India News

Vijay Kumar raised additional questions regarding how companies from northern states could supply ghee at lower prices than those offered by southern counterparts, who claimed they couldn’t match such prices. (Image – TV9 network)

New Delhi: As milk prices continue to rise across the country, a significant fluctuation of up to 20% in ghee prices has sparked questions, a report by Times of India mentioned. The ruling TDP has raised concerns about potential cartel formation during the previous YSRCP administration.

TDP spokesperson Neelayapalem Vijay Kumar accused the YSRCP of allowing only a limited number of companies to participate in reverse tendering, which secured supply contracts from the Tirumala Tirupati Devasthanams (TTD) over the past five years. He claimed that approximately Rs 150 crore changed hands in commissions related to ghee procurement.

TDP alleges a cartel was formed with the complicity of TTD officials

On Saturday, Vijay Kumar revealed the prices quoted by various ghee suppliers over the last five years, alleging that a cartel was formed with the complicity of TTD officials, leading to tenders being awarded in a circular fashion. He noted that the company identified as L1 (lowest bidder) quoted a higher price in the next tender and fell to second place, while the second-place company won the contract by quoting a lower price.

He further alleged that all tenders during this period were consistently awarded to a small group of companies, mainly from Maharashtra, Rajasthan, Uttar Pradesh, and Uttarakhand. He questioned why no companies or farmer cooperatives from the Telugu states or South India participated or withdrew from the so-called “reverse tendering.”

Vijay Kumar raised additional questions regarding how companies from northern states could supply ghee at lower prices than those offered by southern counterparts, who claimed they couldn’t match such prices. He highlighted that Vaishnavi Dairy from Andhra Pradesh was the only company able to provide ghee at prices comparable to those of northern suppliers and had continuously secured tenders over the last five years, unlike other dairies from South India.

Discrepancies in ghee prices

He also pointed out the discrepancies in ghee prices quoted by dairies in various tenders called by TTD, with fluctuations reaching up to 20%. He mentioned that prices had dropped by as much as Rs 137 during the reverse tendering process. For instance, in January 2022, M/s Premier Agri Foods Pvt Ltd, Hathras, initially bid Rs 475 per kg, but later quoted Rs 329 per kg in a subsequent tender, the TOI report further mentioned.

“Ghee is not a speculative commodity; such fluctuations and volatility in its prices raise fundamental questions,” he said, emphasising that if raw material prices, like milk, are consistently rising, it is suspicious for companies to reduce ghee prices without some form of misconduct.

Vijay Kumar urged the new SIT, which will be formed under Supreme Court directives, to consider these concerns and conduct a thorough investigation, not only into ghee procurement but also into other materials used in the preparation of laddus and prasadams.