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    Aavin benefits as private milk firms increase rates

    The recent hike of retail milk prices between Rs 2 and Rs 5 by private milk producers in the State has resulted in the demand for Aavin milk shooting up by 20,000 litres per day over the last two days, according to Aavin MD Sunil Paliwal

    Aavin benefits as private milk firms increase rates
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    Chennai

    Stating that the recent spurt in demand for Aavin milk would further go up, Sunil Paliwal said farmers supplying to Aavin were being paid Rs 28 per litre which was Rs 3 to Rs 4 higher than the amount that was being given by private companies to their suppliers. 

    While Aavin paid a flat rate to all farmers in the state, private players took into account the area, demand and the supply a location could assure. Private players paid anywhere between Rs 22 and Rs 26 a litre.  

    Aavin at present markets four types of milk. Double toned milk is usually procured only by limited consumers and the daily sale amounts to roughly 5000 litres per day, while toned milk accounts for the largest demand at 5.5 lakh litres. 

    Standardised milk amounts to another 4.5 lakh litres a day while the full cream variety is to the tune of 1.45 lakh litres, he said.  

    Aavin clearly enjoys an advantage due to government backing, vast infrastructure and milk producers all over the state. While private players are relatively newer entrants in this field, compared to Aavin, the latter has to ensure that timely supply, immediate redressal of grievances and quality are maintained scrupulously. 

    That the latter takes this seriously was evident when these columns highlighted recently that hot milk sale was stopped by sellers themselves as it was not remunerative. 

    The next day, the price of Aavin supplied milk was reduced by more than Rs 10 per litre resulting in many sellers restarting sales as they were now assured of some profit.

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