CHENNAI: Private dairy companies in Tamil Nadu are set to raise milk prices by up to Rs 4 a litre and curd prices by Rs 2 a kg from Saturday, September 26, citing higher procurement costs, the Tamil Nadu Milk Dealers Employees Welfare Association said on Friday.

The move follows Arokya’s recent price revision and is expected to be followed by major private brands, including Dodla, Heritage, Tirumala, Srinivasa, Vallabha and Jersey, besides other dairies operating in Tamil Nadu.

Under the revised rates, 500-ml toned milk will cost Rs 32, up from Rs 31, while standardised milk will rise from Rs 35 to Rs 37 and full-cream milk from Rs 40 to Rs 42. The prices of one-litre packs of toned, standardised and full-cream milk will increase to Rs 61, Rs 70 and Rs 81, respectively.

The price of 500-gm toned curd will rise from Rs 41 to Rs 42, while double-toned curd will cost Rs 37, up from Rs 36.

The association said the latest hike would widen the price differential between private brands and Aavin, ranging from Rs 14 to Rs 30 a litre across different milk variants. It said the widening gap could drive more consumers towards Aavin and further strain its supply network.

The government has revised Aavin’s milk procurement price from Rs 38 to Rs 44 a litre with effect from September 1, while retaining its retail prices unchanged. The revised rate comprises a base procurement price of Rs 36 and an incentive of Rs 8, with the State providing Rs 600 crore annually towards the incentive.

The association, however, claimed that Aavin was incurring an average loss of more than Rs 15 a litre, amounting to around Rs 4.7 crore a day, because its retail prices had not been revised in line with procurement costs.

“The government should immediately review Aavin’s retail prices and take steps to prevent the cooperative from being pushed into a financial crisis,” association founder and state president S A Ponnusamy said.

He also urged the government to strengthen the Dairy Development Department as an integrated mechanism to oversee milk procurement, distribution and retail pricing, and appealed to private dairies to reconsider frequent price revisions in the interest of consumers.