TTD official counters KMF charge on ghee procurement for ''laddus''

The Tirumala Tirupati Devasthanam (TTD) procures cow ghee only from those suppliers who pass the twin tests of uncompromising quality and least cost (L1 bidder) through a rigourous e-tender process for making its world famous 'laddu', said a TTD official on Tuesday.

A V Dharma Reddy, Executive Officer of TTD, official custodian of Sri Venkateswara Temple in Tirupati made these clarifications in light of the allegations made by Nandini brand milk producer Karnataka Milk Federation (KMF) chairman Bheema Naik that the temple body was procuring low quality ghee.

The procedure for procurement of any item by TTD is on a tender basis. We go for e-tenders. First technical bid and then financial bid, Reddy told PTI.

Especially, for an item like ghee, he explained that a team of scientists first evaluate the quality of a supplier's product by auditing their plants and only then allow them into the second round of financial bidding.

Reddy detailed that they go to each and every technical bidder's plant to assess their capability, strength, milk procurement process, equipment and other crucial factors before giving the green signal.

On clearing this stage by meeting TTD's ghee parameters, the EO said the prospective suppliers are allowed to make financial bids on a per kg basis and TTD picks up the L1 bidder, offering the lowest competitive price.

However, he noted that KMF has supplied ghee only once in the past 20 years, countering the charges levelled by Naik.

How can he say that we are buying bad quality ghee? In the last 20 years they supplied only once. Do you think for the past 19 years our laddus were bad and only one year it was good, that too with his 20 percent of ghee? asked Reddy.

He further said that with great difficulty, the KMF met just 20 percent of TTD's requirement once, that too taking a full year while it was supposed to do it in just six months.

According to the EO, TTD requires 15,000 kg or 15 tonnes of ghee per day, 450 tonnes a month and 5,400 tonnes a year. When KMF could not meet just 20 percent of the requirement on time then how can Naik think of meeting our whole requirement, he wondered.

So, we have to always go for some other supplier. We are not bothered who supplies, whether they passed the test in the TTD lab is more important. Once they pass, whether it is a or b or c, how does it matter for us?.. he asked.

Further highlighting the stringent quality standards of TTD, Reddy said every supply consignment is tested for quality and then only accepted. In the event of a failure, he said the truckload of ghee is rejected and sent back.

Even though KMF never qualified as an L1 bidder, he reminded that TTD had done a favour by allowing the L3 bidder (KMF) to supply 20 percent ghee requirement in 2021 after taking the L1 bidder's permission. 

Reddy recalled that this happened after the KMF chairman had personally met TTD officials back then.

TTD had placed an order with KMF for the supply of 4.1 lakh kg (20 percent requirement) agmark special grade cow ghee at Rs 392.22 per kg for a period of six months, which it completed in March 2022.

In the following e-tender in November, 2021 Reddy said KMF had emerged as the L5 bidder with a quotation of Rs 421.12 per kg whereas L1 bidder, Premier Agri Foods Pvt Ltd, quoted a price of Rs 329.

In that tender, TTD placed an order for more than 20 lakh kg of ghee with Premier Agri Food Pvt Ltd and L2 bidder Bholebaba Oroganic Dairy Milk Pvt Ltd in the ratio of 65:35.

In the tender held in June, 2022 Reddy said KMF emerged as the L3 bidder by quoting a price of Rs 585 per kg ghee while L1 rate was Rs 467.86 and noted that KMF did not even participate in the March 2023 tender.