Milk shortage looms in Tamil Nadu as private dairies set to hike prices by Rs 4/litre

CHENNAI: Private milk companies in Tamil Nadu will increase the retail prices of milk and curd by Rs 4 per litre from Thursday (July 9), marking the second price revision this year, according to a Maalaimalar report.

The Tamil Nadu Milk Agents and Workers Welfare Association, while condemning the latest hike, warned that disruptions to milk production across several States have created an unprecedented crisis and could lead to a severe milk shortage in Tamil Nadu.

Association cites falling milk production

The association said milk production had been severely affected in Tamil Nadu following the failure of the summer rains and had also declined in neighbouring States, including Andhra Pradesh, Telangana, Karnataka, Kerala and Puducherry.

It claimed the shortage had intensified competition among major, medium and small private dairy companies to procure milk from farmers. To secure supplies, companies have reportedly been offering higher procurement prices and additional incentives.

According to the association, many farmers who had previously supplied milk to the State-run Aavin have shifted to private companies due to better procurement prices. It alleged that Aavin's daily milk procurement had fallen to around 25 lakh litres during the previous administration and had not recovered since.

The association urged the government to immediately introduce a scheme to provide free milch cows to farmers in order to increase milk production and stabilise supplies.

Rising costs behind latest price revision

The association said private dairies had already increased milk and curd prices by Rs 2 per litre in February this year to offset higher procurement costs. It attributed the latest increase to rising input costs caused by higher international crude oil prices following the conflict in West Asia, which had pushed up transportation expenses as well as the cost of raw materials used in dairy production.

Revised prices from July 9

One of the leading private dairy companies, Arokya Milk, has informed its agents that the revised prices will come into effect from July 9.

The revised prices are as follows:

• 500 ml toned milk: Rs 31 (up from Rs 29)

• 500 ml standardised milk: Rs 37 (up from Rs 35)

• 500 ml full cream milk: Rs 41 (up from Rs 39)

• 1 litre toned milk: Rs 57 (up from Rs 54)

• 1 litre standardised milk: Rs 69 (up from Rs 66)

• 1 litre full cream milk: Rs 76 (up from Rs 73)

• 500 g Hatsun curd: Rs 44 (up from Rs 42)

• 500 g Arokya curd: Rs 42 (up from Rs 40)

The company has also announced an increase in the commission payable to milk agents and retailers.