The decision has sparked a political row, with the BJP blaming the Congress-led government in Karnataka for the Tirumala temple switching its ghee supplier.
The school education department and the women and child welfare department – chief buyers of the KMF milk powder – have forwarded the proposals to the finance department.
Welcoming the KMF's decision, Kerala Minister for Animal Husbandry, Dairy Development, and Milk Cooperatives J Chinchurani said this shift has come in the wake of change of government in Karnataka following the victory of the Congress.
In a statement, the Bruhat Bangalore Hotel Association expressed concerns about the impact of Amul's entry into the market on the livelihoods of local farmers.