Andhra, Rajasthan deals to boost Aavin’s profit

The MoU comes after the Chennai Aavin federation MD C Kamaraj, successfully negotiated the terms with his Andhra Pradesh counterpart at Hyderabad recently. “After facing a milk shortage, Andhra Pradesh sought our help. The new arrangement will enable us to earn a profit of Rs 1.50 crore per month,” said Vellore Aavin General ManagerV Kothandaraman.

Meanwhile, Vellore Aavin also received orders to supply 30 tonnes of ghee to a private dairy at Jodhpur in Rajasthan state. “The merchandise will be packed in 15 kg tins and the ghee will have a shelf life of six months,” Kothandaraman said and added that the load would be sent by road from Vellore.

With the Vellore dairy already sending 40 tonnes of ghee to Chennai every month, this additional request would help the Vellore dairy earn an additional profit of Rs 15 lakh, Kothandaraman added.

Initially, the excess milk was being sent to the Chengam dairy in Tiruvannamalai district for converting milk into dairy products, entailing a conversion cost ranging between Rs 10 and Rs 12 per litre of milk. “The Rajasthan order will thus save the conversion cost for Vellore diary,” Kothandaraman averred.

The power struggle between two rival groups in a village milk producers’ society at Aranipalayam near Arni in Tiruvannamalai district, has resulted in the society losing milk dues for a day amounting to Rs 1.48 lakh, on Thursday.

Though initially the rivalry just resulted in the two groups blaming each other for minor faults, recently the tiff widened with one group adding water to the load that was sent to Ambattur, Chennai. On Monday, when the load arrived at Ambattur, quality checks revealed that high quantity of water has been added to the milk turning it unacceptable under the Aavin federation norms.

As the product was of inferior quality, senior dairy officials said, “The milk was returned to the Vellore mother dairy. However, the society will lose one day’s earnings amounting to Rs 1.48 lakh as the product was totally substandard.”

Based on information about the complaint, the Tiruvannamalai Deputy Registrar (dairy) suspended the society’s secretary and treasurer. Later the complaint was withdrawn following a compromise effected between the groups.