Consumers in Tamil Nadu will experience an increase in prices for milk and curd starting Thursday, as private dairy companies plan to raise retail prices by Rs 4 per litre from July 9. This adjustment marks the second price hike by private dairies this year, attributed to escalating procurement costs and a growing shortage of raw milk.
The Tamil Nadu Milk Agents and Workers Welfare Association expressed disapproval of the price hike, citing an unprecedented supply crisis in the dairy sector due to reduced milk production in various southern states. The association highlighted the adverse impact of deficient summer rains on milk production in Tamil Nadu and neighboring regions like Andhra Pradesh, Telangana, Karnataka, Kerala, and Puducherry.
Amidst the shortage, private dairy companies are facing heightened competition to secure milk from farmers, leading to increased procurement prices and supplementary incentives. Allegations surfaced that many dairy farmers who previously supplied milk to the State-run Aavin have shifted to private entities due to better pricing offers.
The organization urged the Tamil Nadu government to implement a scheme offering free milch cows to farmers, emphasizing the potential benefits of such a measure in boosting milk production, enhancing rural incomes, and stabilizing the state’s milk supply in the long run. Private dairy companies had earlier raised milk and curd prices by Rs 2 per litre in February, citing elevated procurement costs.
Industry experts anticipate that other private dairy firms in Tamil Nadu will also adjust their prices, further burdening consumers financially.
