Company run by Ganesh Kumar’s wife bags Kerafed, Milma export deals without tender

Thiruvananthapuram: State-run cooperatives Kerafed and Milma have awarded overseas marketing contracts to a private company owned by the wife of a minister, bypassing competitive bidding, public notice or any call for expressions of interest, raising questions over the propriety of the deal. The contracts were granted to Midnight Sun Global, led by Bindu Menon, the wife of Minister K B Ganesh Kumar.

The contracts pertained to the sale of coconut oil marketed by Kerafed in Dubai and Milma’s products in New Zealand and Australia. While Kerafed insists that selling coconut oil to a wholesale agent doesn’t require a tender, the cooperative has never signed such overseas contracts with any other company before.

The move had drawn objections from the concerned departments, which said that awarding such a contract to a single company without a competitive process was irregular. Concerns were also raised over the propriety of awarding the contract to a company owned by a minister’s family member, with no clear explanation offered.

Between January and March 2025, six tonnes of coconut oil were shipped under the contract, and again in November the same year, another 20 tonnes were sent.

Midnight Sun Global is registered at the residence of K B Ganesh Kumar in Kudappanakunnu, house number KR-A 144-(A), with his wife, Bindu Menon, listed as CEO on the company’s website. According to Milma Chairman KS Mani, the contract was signed after Midnight Sun Global approached Milma, expressing interest in such a deal, and subsequent discussions were held. Under the agreement, the company is required to purchase ghee worth at least ₹20 lakh and milk products worth ₹5 lakh every month.

Commission 'sweetener' in export deal
The overseas coconut oil trade is based on a contract involving Kerafed, Midnight Sun Global and LG FMCG Trading LLC in Dubai. Under the arrangement, Midnight Sun Global purchases coconut oil from Kerafed and supplies it to the Dubai-based company. The contract was signed on November 16, 2024.

During negotiations, the company sought coconut oil from Kerafed at subsidised rates, a demand that sparked disagreement within the cooperative at the time. Under pressure from higher levels, Kerafed eventually allowed the company an additional 15 per cent commission above the usual margin given to wholesale traders, based on which the agreement was finalised.