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Hike in Aavin milk price criticised

CHENNAI: AIADMK general secretary Jayalalithaa has criticised the government for increasing the price of Aavin milk.

In a statement here on Tuesday, Ms. Jayalalithaa ridiculed the government’s stand that Aavin was forced to revise the price as it had been incurring a loss of Rs. 100 crore annually In addition to the hike in toned milk price, the government had increased the price of other varieties of milk and milk products without any announcement. Only last year, the government had increased the price by Rs. 1.25 a litre stating that hike was to compensate Aavin’s loss of Rs. 40 crore annually.

The AIADMK leader said the Minister’s statement that by the current increase in price, the loss would be reduced to Rs. 21 crore clearly indicated that another hike in the price was in the offing.

Ms. Jayalalithaa said during her regime, the government had increased the procurement price for farmers by Re. 1 but did not pass the burden to the Aavin consumers.

The increase, she charged, would have a cascading effect on prices of coffee, tea and ice creams and would cost the common man an additional expenditure of Rs. 500 a month.

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