Aavin proposes Rs 5 per litre milk price hike in Tamil Nadu
The state dairy cooperative seeks government approval to increase retail prices to support its finances and outlet operators.
Tamil Nadu’s cooperative milk supplier, Aavin, has recommended a retail price increase of Rs 5 per litre, according to reports by The Hawk and Urban Acres. The proposal is currently awaiting approval from the State government.
The recommendation aims to address financial pressure on the cooperative and the difficulties faced by milk outlet operators. Under the proposed plan, Rs 4 of the increase would go to Aavin, while Re 1 would be allocated to retail booth operators.
Aavin sources stated that current commission levels of 75 paise per packet are inadequate for operators to cover shop rents and electricity charges. This has reportedly led to newly opened outlets in several districts shutting down within months.
The cooperative procures approximately 35 lakh litres of milk daily, with Chennai accounting for about 15 lakh litres of those sales. Commercial buyers, such as hotels and sweet shops, purchase large quantities because Aavin is cheaper than private brands that sell milk for more than Rs 75 per litre.
While a recent government increase in procurement prices provided relief to farmers, Aavin sources said the retail revision is needed to support the cooperative and its retail network. The proposal notes that the recommended Rs 5 hike is lower than the increase of up to Rs 8 per litre recently seen in Karnataka.