Chennai, Sept 15:
The Tamil Nadu Dairies Association has urged Chief Minister C Joseph Vijay to reconsider the subsidy structure extended to Aavin and ensure a level playing field for private dairy companies, amid successive increases in Aavin’s milk procurement price.
In a representation to the Chief Minister, the association said private dairy companies had played a significant role in the State’s dairy sector for three decades and claimed that they handled around 75 per cent of milk procurement and sales in Tamil Nadu.
The association said government support to Aavin had placed private dairies at a disadvantage as they did not receive comparable subsidies. It said the latest increase in support to Aavin had widened the disparity between the cooperative and private sectors.
Aavin’s cow-milk procurement price was increased from Rs 38 to Rs 41 a litre on August 19 and subsequently to Rs 44 on August 31. The government had cited rising fodder and input costs for the revision, which is expected to cost the State an additional Rs 60 crore a month.
The association said private dairies, without an equivalent subsidy, were being forced to increase procurement prices to retain farmers and pass on the additional cost to consumers. It urged the government to reconsider consumer subsidies and allow retail prices to reflect procurement costs while protecting farmers dependent on private dairies.