Chennai, July 27:
Private dairy companies have increased the retail prices of milk and curd by ₹2 to ₹4 per litre for the second time this year, taking the cumulative hike to as much as ₹6 per litre since July. The move has triggered concerns among milk dealers, who warn of a potential shortage of Aavin milk unless the State government intervenes to boost production.
Major brands such as Tirumala, Srinivasa, Vallabha, Jersey, Heritage and Dodla rolled out the latest price revisions across Tamil Nadu from Sunday. The hike follows earlier increases by Arokya and several Tamil Nadu-based brands, indicating a near-universal price revision across private dairies.
The Tamil Nadu Milk Dealers’ Welfare Association attributed the hikes to an acute shortage of milk production in the State and neighbouring regions. The shortage has intensified competition among private players, who are offering higher procurement prices and incentives to farmers while citing rising input and operational costs.
However, the association criticised private dairies for neglecting dealers’ concerns. Its founder and State president, S. Ponnusamy, said distributors continue to bear rising fuel, maintenance, rental and wage costs without corresponding increases in commission. He called for a shift from a fixed commission system to a percentage-based model and demanded incentives for digital transactions.
The latest price hike is also expected to widen the gap between private brands and State-run Aavin, which remains cheaper by nearly ₹20 per litre in several categories. Dealers say this could push more consumers, especially from lower- and middle-income groups, towards Aavin.
The association warned that without significant steps to increase milk production, aggressive procurement by private dairies could weaken Aavin’s supply network and lead to further price hikes. It also expressed concern over the State government’s lack of engagement, claiming that attempts to raise the issue with senior officials have not received a response.
Calling for urgent policy intervention, the association urged the government to stabilise milk production, strengthen Aavin’s procurement base and address the ongoing supply-demand imbalance.