The Hindu : Tamil Nadu News : Rise in Aavin milk sale

Online edition of India's National Newspaper
Monday, Feb 05, 2007
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Tamil Nadu

Tamil Nadu

Rise in Aavin milk sale

S.Vydhianathan

Price hike by private dairies cited

CHENNAI: Aavin milk sale in Chennai has increased substantially, touching a record 10.5 lakh litres a day on February 1.

Sale of milk, marketed by Tamil Nadu Cooperative Milk Producers Federation under the brand name Aavin, has been on the rise for the last two months and it is more pronounced since the beginning of the month. One reason for the increase in the sales, according to a federation official, is the recent hike in price of milk being sold by private milk dairies.

Price difference

Already the price difference between private dairy milk and Aavin was Re one to Rs 2 a litre. The recent hike by private dairies has widened the price difference further. Now the price of private dairy milk is Rs. 16 to Rs. 17.50 a litre as against Rs. 14 a litre of Aavin milk (toned) and Rs. 16 a litre of standardised milk. For cardholders, the price is only Rs. 12.50 and Rs. 14.50 a litre for toned and standardised milk respectively. The price of standardised milk being sold through automated vending machine is only Rs. 14.50 a litre.

The increase in daily milk sales had led to shortage of product sales. Aavin butter and ghee are in short supply in the city. For the last three months, butter and ghee were available only in Aavin parlours and not in private outlets. Now the parlours also did not have stock. It would take at least a week to get the supply, according to parlour owners.

Shortage of butter, ghee

The federation official said the shortage of butter and ghee was due to increase in milk sales. Priority was being given to milk supply to consumers and only surplus milk was converted into butter and ghee. Now the surplus had come down due to increase in milk sales, thereby affecting the butter production. He said the situation would improve in the two weeks when the federation would be able to produce sufficient butter and ghee.

The official said the milk procurement by the federation would be affected as the private dairies had increased the rate of purchase price from dairy farmers. This might induce the farmers who had been supplying milk to the federation to shift to private dairies. Moreover, private dairies were paying advance to farmers for the milk supply while the federation disbursed the money once in two weeks.

The federation had written to the State Government recently to allow it to increase the procurement price and the selling price by at least Rs. 2 a litre. But there was no response from the Government.

He said the milk price was the lowest in the State compared to other States.

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