Tamil Nadu's Private Dairies Increase Milk Prices: Consumers Flock to Aavin Amid Supply Challenges
Synopsis
In Tamil Nadu, private dairies have raised milk prices by Rs 2 per litre, leading consumers to switch to Aavin for more affordable options. This shift is driven by supply constraints and rising procurement costs for farmers.
Key Takeaways
Tamil Nadu private dairies increased milk prices by Rs 2 per litre .
Household budgets and small businesses may be affected.
Arokya was the first to implement price changes on February 21.
Aavin offers a competitive price, attracting consumers.
Stock shortages for Aavin products are reported at retail outlets.
Chennai, Feb 26 (NationPress) In Tamil Nadu, private dairy companies have raised the retail price of milk by Rs 2 per litre, attributing the decision to a drop in milk supply and escalating costs for procuring milk from farmers.
This price adjustment, which has already taken effect for prominent brands, is set to affect household expenses and small enterprises reliant on dairy goods.
Arokya was among the first to implement the new prices on February 21, increasing costs for both milk and yogurt. Following this, other significant private brands like Dodla and Jersey made similar adjustments. As a result, the price for full-cream milk has increased from Rs 76 to Rs 78 per litre, while the cost for 'special tea' milk has gone up from Rs 68 to Rs 70.
Furthermore, standardised milk has risen from Rs 66 to Rs 68 per litre, toned milk from Rs 60 to Rs 62, and double-toned milk from Rs 48 to Rs 50.
The prices for yogurt have also been adjusted.
A one-kilogram pack of yogurt now costs Rs 76, up from Rs 74, while the 450-gram pack has seen an increase from Rs 38 to Rs 40. Additionally, double-toned yogurt has risen from Rs 70 to Rs 72 per kilogram.
This increase in prices by private dairies has prompted many consumers to switch to Aavin, the state-run dairy cooperative, which continues to offer milk at much lower prices.
Presently, Aavin milk costs approximately Rs 18 less per litre than private brands, with a price difference of about Rs 10 per half litre.
The significant price disparity has resulted in a surge in demand for Aavin products, leading to stock shortages at numerous retail locations, where supplies reportedly sell out shortly after they arrive.
Industry insiders point to a decline in milk production in the state as the reason behind the price hikes, compelling private dairies to purchase milk from farmers at elevated costs.
The President of the Tamil Nadu Milk Agents Workers Welfare Association, Ponnusamy, stated that private firms modified retail prices after increasing procurement rates for dairy farmers. He also accused Aavin of not taking adequate measures to enhance milk production, cautioning that output had already diminished prior to the summer and may decline further in the upcoming months. Additionally, he called on private companies to raise the commission given to milk agents due to the adjusted retail prices.
Point of View
The recent increase in milk prices by private dairies in Tamil Nadu highlights the ongoing supply issues and the impact on consumers. The shift towards Aavin indicates a growing demand for affordable dairy options amidst rising costs.
NationPress
11 May 2026
Frequently Asked Questions
What caused the milk price increase in Tamil Nadu?
The increase in milk prices is attributed to a decline in milk production and rising procurement costs from farmers.
How much have private dairies raised their milk prices?
Private dairies have raised their milk prices by Rs 2 per litre.
Why are consumers switching to Aavin?
Consumers are shifting to Aavin as it offers milk at significantly lower prices compared to private brands.
What impact has the price hike had on dairy product availability?
The price hike has led to increased demand for Aavin products, resulting in stock shortages at various retail outlets.
What does the Tamil Nadu Milk Agents Workers Welfare Association say about the price increase?
They claim private companies raised prices after increasing procurement rates and criticized Aavin for not enhancing milk production.
