Aavin defends dairy price hike, says over 90% of additional revenue will go to producers’ welfare

CHENNAI: State-owned Aavin on Tuesday defended its decision to raise the prices of dairy products, saying more than 90 per cent of the additional revenue generated by the revision would be used for milk producers’ welfare, with rising production costs necessitating the adjustment.

In a statement, Aavin said it had assessed the prices and production costs of comparable products sold by private dairy companies and cooperative milk federations in other states before revising its rates. It maintained that its products would remain cheaper than comparable offerings from private and cooperative brands even after the increase.

The clarification comes amid scrutiny of the price increase, which marks a significant pricing decision under the TVK-led government.

The revision was necessary to offset rising production costs and maintain Aavin’s competitiveness in the market, without a profit-driven motive, the statement said.

Emphasising the importance of safeguarding farmers’ livelihoods, Aavin said milk production was a major source of income for lakhs of rural families and that ensuring remunerative procurement prices for producers was the government’s responsibility.

The additional revenue would help improve producers’ incomes and strengthen the cooperative milk procurement network, it said.

Aavin said its primary objectives remained protecting milk producers’ interests and supplying quality milk and dairy products to consumers at reasonable prices.

Appealing to consumers to continue purchasing its products, Aavin said public support was essential to strengthening the cooperative sector and improving the livelihoods of milk producers.