Aavin proposes Rs 5 per litre milk price hike in Tamil Nadu
The cooperative milk supplier seeks government approval to increase retail prices to support its finances and booth operators.
Aavin has recommended a retail milk price increase of Rs 5 per litre in Tamil Nadu, according to reports by Dinamalar and The Hawk. The proposal is currently awaiting approval from the state government.
Under the suggested plan, Rs 4 of the increase would go to the cooperative, while Re 1 would be allocated to retail booth operators. Aavin sources stated the move aims to support the administration, farmers, and outlet operators following a government increase in the price paid to milk producers.
The cooperative procures about 35 lakh litres of milk daily, with Chennai accounting for approximately 15 lakh litres of those sales. Current prices for 500-millilitre packets include Rs 30 for orange packets, Rs 24 for green and violet packets, and Rs 20 for blue packets.
Booth operators currently receive a 75 paise commission per packet. Operators have said that shop rentals and electricity charges make it difficult to operate at these levels, leading to some new booths closing within months in several districts.
The cooperative faces pressure as commercial buyers, such as hotels and tea shops, purchase large quantities due to Aavin being cheaper than private brands that sell milk for over Rs 75 per litre. This demand can sometimes reduce availability for individual consumers at retail booths.
The implementation of the new rates depends on a decision by the state government regarding which products and prices will be affected.