The Tamil Nadu Milk Agents Workers Welfare Association has urged the state government to urgently review Aavin's retail milk prices, warning that a growing price gap between the cooperative and private dairies could trigger a surge in demand for Aavin products and worsen supply shortages already being reported across the state.

Private Dairies Hike Rates

Several private dairy brands in Tamil Nadu are raising retail milk prices by up to ₹4 a litre and curd prices by up to ₹2 a kilogram from 26 September 2026, according to the association. Arokya introduced comparable hikes on 21 September, and brands including Heritage, Tirumala, and Jersey are among those revising rates.

Under the revised pricing cited by the association, a 500 ml packet of toned milk rises from ₹31 to ₹32, standardised milk from ₹35 to ₹37, and full cream milk from ₹40 to ₹42. For one-litre packets, toned milk goes from ₹59 to ₹61, standardised from ₹68 to ₹70, and full cream from ₹78 to ₹81. Two 500 gram curd packs also see a ₹1 increase each.

The Aavin Price Gap and Supply Risk

Association president Ponnusamy said private dairies began raising rates after the government increased Aavin's milk procurement price by ₹6 a litre, prompting competing companies to revise their own farmer pay-outs and, in turn, their retail rates. He said the resulting gap would make private milk considerably more expensive than comparable Aavin products — the association estimated the difference at ₹7 for a 500 ml toned milk packet, ₹15 for standardised milk, and ₹12 for full cream milk.

The association warned that households seeking cheaper options could shift to Aavin in large numbers, straining a cooperative that is reportedly already struggling with supply. Companies in Tamil Nadu and neighbouring states are said to be facing difficulty sustaining procurement amid lower overall milk production.

Aavin's Financial Strain

The association claimed Aavin was losing more than ₹15 a litre on average because its retail prices have not been adjusted to reflect rising procurement costs. It called for urgent government intervention to protect the cooperative's financial health while keeping milk accessible to consumers.

As of 26 September 2026, the Tamil Nadu government has not announced any change to Aavin's retail prices.

Broader Demands

Beyond the price review, the association appealed to Chief Minister to establish a dedicated department to oversee milk production, procurement, distribution, and sales, and to address challenges faced by farmers, agents, and private dairies alike. It also called on private companies to reconsider frequent price revisions, citing their disproportionate impact on low- and middle-income families.

With procurement costs rising, consumer demand potentially shifting, and Aavin's finances under pressure, the Tamil Nadu government faces a delicate balancing act that could determine milk affordability for millions of households in the weeks ahead.