NewKerala.com

Tamil Nadu Milk Prices Rise Rs 2/Litre, Consumers Rush to Aavin Amid Shortages

Major private dairy brands in Tamil Nadu have increased milk prices by Rs 2 per litre, citing higher procurement costs and lower production. This has prompted many consumers to switch to the significantly cheaper state-run Aavin brand. The resulting surge in demand for Aavin has led to stock shortages at retail outlets as supplies sell out quickly. Industry representatives warn that milk production has declined and could worsen, criticizing Aavin for insufficient measures to boost output.

Key Points: TN Milk Price Hike: Private Dairies Raise Rates, Aavin Demand Surges

  • Private milk prices hiked by Rs 2/litre
  • Consumers shifting to cheaper state-run Aavin
  • Aavin faces stock shortages due to demand surge
  • Price rise linked to lower milk production and higher farmer costs
2 min read

TN private dairies raise milk prices by Rs 2 per litre, consumers shift to Aavin amid supply strain

Private milk prices in Tamil Nadu increase by Rs 2/litre, causing a consumer shift to cheaper Aavin milk and leading to supply shortages.

"Aavin had not taken sufficient steps to boost milk production - Ponnusamy"

Chennai, Feb 26

Private milk companies across Tamil Nadu have increased retail milk prices by Rs 2 per litre, citing a decline in milk production and rising procurement costs from farmers.

The price revision, which has already come into effect for leading brands, is expected to impact household budgets as well as small businesses dependent on dairy products.

Arokya was among the first to implement the revised rates on February 21, increasing prices for both milk and curd. Soon after, other major private players such as Dodla and Jersey followed suit. With the hike, the price of full-cream milk has risen from Rs 76 to Rs 78 per litre, while "special tea" milk now costs Rs 70, up from Rs 68.

Standardised milk has increased from Rs 66 to Rs 68 per litre, toned milk from Rs 60 to Rs 62, and double-toned milk from Rs 48 to Rs 50.

Curd prices have also been revised.

A one-kilogram pack of curd now costs Rs 76, compared to the earlier Rs 74, while the 450-gram pack has gone up from Rs 38 to Rs 40. Double-toned curd has been raised from Rs 70 to Rs 72 per kilogram.

The price hike by private dairies has led many consumers to shift to Aavin, the state-run dairy cooperative brand, which continues to sell milk at significantly lower rates.

Currently, Aavin milk is priced around Rs 18 less per litre compared to private brands, with a difference of about Rs 10 per half litre.

The sharp price gap has triggered a surge in demand for Aavin products, resulting in stock shortages at several retail outlets, where supplies reportedly sell out soon after arrival.

Industry sources attribute the increase to reduced milk production in the state, forcing private dairies to procure milk from farmers at higher prices.

Tamil Nadu Milk Agents Workers Welfare Association President Ponnusamy said that private companies revised retail prices after raising procurement rates paid to dairy farmers. He also alleged that Aavin had not taken sufficient steps to boost milk production, warning that output had already declined even before the onset of summer and could worsen in the coming months. Additionally, he urged private firms to increase the commission paid to milk agents in view of the revised retail prices.

- IANS

Share this article:

Reader Comments

R
Rohit P
Private companies always find an excuse to raise prices. First fuel, now milk! If they are paying more to farmers, that's good, but how much of this Rs. 2 actually reaches the dairy farmer in villages? I suspect most is profit for the company. Shifted to Aavin last week.
S
Suresh O
As a small tea shop owner, this is a big problem. My main cost is milk and sugar. Even a Rs. 2 increase means my profit margin vanishes. I've started using Aavin milk for making tea, but the supply is so irregular. Sometimes I have to mix brands. Hope the situation stabilizes soon.
A
Aryan P
The real issue is the decline in production. The association president has a point – what is Aavin doing to help farmers increase yield? Just being cheaper is not a long-term solution if there's no milk to sell. Need better cattle feed schemes and veterinary support from the state.
M
Meera T
In my area, the Aavin booth is empty by 8 AM. People are buying 5-6 packets at a time out of fear, which makes the shortage worse. We need a per-person limit during this crisis. Also, private brands should think about customer loyalty before hiking prices so frequently. 😠
D
David E
Living in Chennai for 5 years now. This is a classic demand-supply problem. If production is down, prices go up. The silver lining is that farmers might be getting a better deal, which they deserve. But the state needs to plan for summer, it's only going to get hotter and production lower.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50