Private milk companies in Tamil Nadu have recently increased retail milk prices by Rs 2 per litre due to a drop in milk production and higher procurement costs from farmers. This price adjustment, effective immediately for major brands, is expected to impact household budgets and businesses relying on dairy products. Arokya was one of the first brands to implement the new rates on February 21, with other key players like Dodla and Jersey following suit.
Standardized milk prices have risen from Rs 66 to Rs 68 per litre, while full-cream milk now costs Rs 78, up from Rs 76. The price of “special tea” milk has increased to Rs 70 from Rs 68. Additionally, toned milk prices have gone up from Rs 60 to Rs 62, and double-toned milk from Rs 48 to Rs 50. Curd prices have also seen revisions, with a one-kilogram pack now priced at Rs 76, up from Rs 74.
The price surge by private dairies has prompted many consumers to switch to Aavin, the state-run dairy cooperative brand, which continues to offer milk at significantly lower prices. Aavin’s milk is currently priced around Rs 18 less per litre compared to private brands, leading to a notable increase in demand for Aavin products. This surge in demand has caused stock shortages at various retail outlets, with supplies quickly selling out upon arrival.
Industry insiders attribute the price hike to reduced milk production in Tamil Nadu, compelling private dairies to pay higher rates to farmers for milk procurement. President of the Tamil Nadu Milk Agents Workers Welfare Association, Ponnusamy, mentioned that private companies adjusted retail prices following increased procurement rates paid to dairy farmers. He also criticized Aavin for not taking adequate measures to boost milk production, warning of further declines in output, especially with summer approaching. Ponnusamy urged private firms to raise the commission paid to milk agents in light of the revised retail prices.
