Private milk prices set to rise from Sept 26

Chennai, Sept 25:

Private dairy companies in Tamil Nadu are set to increase the prices of milk and curd from September 26, according to the Tamil Nadu Milk Dealers and Workers Welfare Association. The association said the hike follows the recent increase in Aavin’s milk procurement price and rising procurement costs faced by private dairies. Arokya had already raised its milk price by Rs 4 per litre and curd price by Rs 2 per kg from September 21.

According to the association, brands including Dodla, Heritage, Tirumala, Srinivasa, Vallabha and Jersey, along with other private dairy companies operating in Tamil Nadu, are expected to revise their retail prices. The proposed rates include an increase in toned milk from Rs 59 to Rs 61 per litre, standardised milk from Rs 68 to Rs 70 and full-cream milk from Rs 78 to Rs 81. Prices of 500-ml toned milk, standardised milk and full-cream milk are also set to be revised.

The association said curd prices would also increase, with 500-gram toned milk curd going up from Rs 41 to Rs 42 and double-toned milk curd from Rs 36 to Rs 37.

The development comes after the Tamil Nadu government raised Aavin’s cow milk procurement price from Rs 38 to Rs 44 per litre and buffalo milk from Rs 47 to Rs 53, with the revised rates effective from September 1. However, the retail price of Aavin milk has been kept unchanged.

The milk dealers’ association claimed that the widening price difference between Aavin and private brands could increase demand for Aavin milk at a time when the cooperative dairy is already facing supply-related challenges. It also claimed that Aavin was incurring an average loss of more than Rs 15 per litre because its retail prices had not been revised in line with procurement costs.

The association urged the Tamil Nadu government to review Aavin’s retail pricing while ensuring adequate milk supply. It also called for the Dairy Development Department to take a broader role in monitoring milk procurement, production, distribution and retail prices across both cooperative and private dairy sectors.