Aavin cuts daily milk supply by 3 lakh litres; consumers hit

CHENNAI: A sharp fall in milk procurement has forced the Tamil Nadu Cooperative Milk Producers’ Federation Limited (TNCMPF), which markets milk and dairy products under the ‘Aavin’ brand, to curtail milk supply across Tamil Nadu, leaving consumers wanting for more even as the cooperative insists the shortfall is temporary and procurement is gathering pace.

The impact is visible in Chennai, where Aavin’s daily distribution has come down to 13.5 lakh litres from about 16 lakh in April. Supply has reduced by around 30% across the State, according to officials.

“For the past few weeks, milk packets are either unavailable or are sold out in no time at our Aavin booth. We are forced to visit multiple outlets or buy other brands at a higher price,” said PS Lalitha, a resident of Perambur.

S Madhava Moorthy from RA Puram said, “We have been Aavin customers for years. In recent weeks, its availability has become inconsistent; sometimes we return with fewer packets than what we wanted.” Daily milk procurement has dropped to around 28 lakh litres from 40-45 lakh litres in 2021, widening the gap between supply and demand.

Industry sources and dairy farmers attribute the decline to Aavin’s lower procurement price and delays in incentive payments. At present, Aavin pays Rs 35 per litre for cow milk and Rs 44 per litre for buffalo milk, besides an incentive of Rs 3 per litre. However, farmers allege that incentive payments are often delayed, with dues pending in several districts.

Private dairies, on the other hand, offer Rs 10-12 more per litre and pay on time, prompting many farmers to shift to private buyers, industry representatives said.

Sources in the dairy sector also said that Aavin had been buying milk powder from outside to supplement supplies and meet consumer demand as procurement remains below requirement.

Explaining the situation, Aavin officials told DT Next that procurement had declined sharply over the past year, affecting production. “The cooperative has suffered losses of nearly Rs 600 crore. As procurement came down, production had to be reduced, resulting in a supply shortfall in Chennai and other parts of the State. Efforts are under way to improve procurement and restore normal supply,” they said.

SA Ponnusamy, president, TN Milk Dealers Employees Welfare Association, sought policy intervention, and urged the State government to revise Aavin’s procurement prices to match prevailing market rates that are offered by private dairies. He also called for a revision in Aavin’s retail milk price to strengthen the cooperative’s finances.

“The State government can revive the scheme introduced in 2011 by the then Chief Minister J Jayalalithaa to provide two free milch cows to poor families. This can help increase milk production and support rural livelihoods. The association will soon submit its demands to Milk and Dairy Development Minister C Vijayalakshmi,” he explained.

Senior Aavin officials, however, rejected suggestions of a prolonged shortage. “Milk procurement usually declines during peak summer because of heat stress on cattle. Collection has started improving with seasonal changes and supply will gradually return to normal. There is no proposal at present to increase Aavin’s retail milk price. Any such decision rests with the government,” a senior official told this correspondent.