CHENNAI: Private milk companies in Tamil Nadu have increased milk prices by Rs 2 per litre, citing a drop in milk production and higher procurement costs, said a report by Maalaimalar.
Arokya implemented the revised prices on February 21, increasing rates for both milk and curd. Following this, other private brands, including Dodla and Jersey, have also raised prices.
With the revision, the price of one litre of full-cream milk has gone up from Rs 76 to Rs 78. Special tea with milk now costs Rs 70, up from Rs 68.
Standardised milk has increased from Rs 66 to Rs 68, toned milk from Rs 60 to Rs 62, and double-toned milk from Rs 48 to Rs 50 per litre.
Curd prices have also been revised. One kilogram of curd now costs Rs 76, up from Rs 74, while the 450-gram pack has increased from Rs 38 to Rs 40. Double-toned curd per kg has been raised from Rs 70 to Rs 72.
Following the price hike by private players, many consumers have shifted to Aavin milk, which is currently priced about Rs 18 less per litre compared to private brands.
The price difference of Rs 10 per half litre has further boosted demand for Aavin products. As a result, several outlets are witnessing shortages, with stocks selling out soon after arrival.
Industry sources attribute the hike to reduced milk production in the State. Private dairies are reportedly procuring milk from farmers at higher prices, compelling them to revise retail rates.
Ponnusamy, State president of the Tamil Nadu Milk Agents Workers Welfare Association, said private companies had increased prices after raising procurement rates paid to dairy farmers.
He alleged that Aavin had not taken adequate measures to strengthen milk production, adding that output had declined even before the onset of summer and could worsen in the coming months.
He also urged private companies to increase the commission paid to milk agents in light of the price revision.