CHENNAI: Reports of a proposed Rs 5 per litre increase in Aavin's retail milk price have stirred a row, even as the state dairy cooperative dismissed the claims as false. Official sources indicated a proposal was submitted to shore up finances, granting Rs 4 to Aavin and Re 1 to retail operators struggling with low margins.

The proposal follows a recent Rs 6 per litre hike in procurement prices, and aims at strengthening the cooperative’s milk procurement and distribution network.

Aavin, however, issued a clarification on Monday, describing reports as false and urged the public not to believe unverified information. It said it remained committed to supplying quality milk and dairy products at reasonable prices while balancing the interests of producers and consumers.

The proposed revision comes after the government recently increased Aavin’s milk procurement prices by Rs 6 per litre, taking the rate for cow milk to Rs 44 and buffalo milk to Rs 53. The increase was intended to improve returns to dairy farmers amid rising cattle feed and maintenance costs.