The Hindu : Tamil Nadu News : Aavin finds market in Bihar, Bengal

Online edition of India's National Newspaper
Thursday, Nov 11, 2004

Tamil Nadu

Tamil Nadu

Aavin finds market in Bihar, Bengal

By Our Special Correspondent

CHENNAI, NOV. 10. Aavin has made a foray into the northeastern States, West Bengal and Bihar. Its ghee and milk powder are now sold there, thanks to an effective marketing strategy adopted by the Tamil Nadu Cooperative Milk Producers Federation.

About 20 tonnes of milk powder and four tonnes of ghee are sold every month in these States. As there is a good response from consumers, Aavin is confident of improving its market share substantially in the coming months, according to federation sources.

Milk for Delhi

About 2.5 lakh litres of milk is being sent to Delhi every week from the Erode dairy by rail and about one lakh litres is sold daily in Kerala.

The sources said that unlike last year, the market for ghee in the northern States was depressed this year because of a good monsoon and increased milk production. The price of ghee, which was Rs. 130 a kg last year, camedown to Rs. 85 this year. Though the price of Aavin ghee was Rs. 110 a kg, the market was steady due to customer preference.

Major consumer

Out of about 24 lakh litres processed daily by the federation, three lakh litres was being sold locally by village societies. Chennai city continued to be the major consumer of Aavin milk; about 7.65 lakh litres isbeing sold thereevery day.

Despite a one-rupee increase in procurement price, the federation continued to makeprofits. It instructed district unions to clear procurement dues to farmers. The sources said farmers in some districts wanted payment once a week, some others once in 10 days and the rest once a fortnight. Even in Salem, where procurement dues were heavy, the union arranged to clear the arrears.

However, farmers attached to the Salem District Cooperative Milk Producers Union said the payment had been irregular for the last few months. Normally they got their payment once in 15 days. After repeated representations, the dues were cleared two days ago but only partially.

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