CHENNAI: It’s an open secret. Aavin milk is being sold at rates Rs 3 higher than the MRP at retail shops in Chennai and few other districts. The revised prices, which came into effect on Monday, failed to deter retailers from selling at higher rates. Milk prices have often increased without hiking commission for dealers and retailers for the past 15 years, claim dealers.
The blue sachet toned milk is sold for Rs 46 a litre as against the actual price of Rs 43. Similarly, standardised (green sachet) and full cream milk (Orange) were also sold for Rs 50 and Rs 54 a litre respectively while the MRPs were Rs 47 and Rs 51 respectively.
“The distributors, dealers and retailers have been given Rs 1.5 towards commission a litre which is too low and not viable, given that fuel expenses and electricity charges increased in the last 10 years,” says SA Ponnusamy, State president, Tamil Nadu Milk Dealers Welfare Association.
Ponnusamy said retailers were forced to collect Rs 1.50 additionally for 500-ml sachets from consumers to cope with the additional expenditure. “We also bear the expenses due to damaged milk sachets and spoiled milk. For every 100 litres of milk, two litres get spoiled or damaged, but we have not been given any compensation,” added Ponnusamy.
The milk demand in retail shops in Chennai is about 25 lakh litres a day, of which the share of the State-owned Aavin is 12 lakh litres. While five lakh litres of milk sold through Aavin cards, 6.5 lakh litres of milk are sold through retailers. About 50,000 litres of Aavin milk are distributed to government hospitals. The Aavin brand remains the most sought after among consumers in Chennai as it is considered suitable for the elderly and children.
The milk buyers rue that the complaints of overpricing of Aavin milk had fallen only on the deaf ears.
K Rajpriyan of West Saidapet said, “Not only retail shops but also departmental stores which gave printed bills sell milk at rates higher than the MRP. A few days ago, after repeated calls to Aavin office I was told they were aware of this issue, but unable to act on this,” he added.
A few retailers whom Express interacted with in the city claimed that they were compelled to sell Aavin milk. “We get Rs 3 to Rs 4 profit a litre for selling private milk. I was told if I don’t sell Aavin milk, I won’t be given private milk. When I disputed over the profit margin of Aavin milk, I was asked to sell it at higher prices and people at the ‘top level’ will take care of the rest. Many of us are not willing to sell Aavin milk,” said the retailer.
Interestingly except in Chennai and a few other districts, in most of the parts of the State Aavin milk is being sold at the MRP rates. Industrial sources said that in districts, dealers directly transport milk from Aavin dairies and sell it through retailers.
However, in Chennai owing to huge population the milk distribution network has got three layers. The distributors get milk from Aavin, from whom dealers receive the milk. The dealers, in turn, distribute it to retail shops for public sale.
“The distributors in Chennai and dealers in districts were given Rs 40 paise incentive for every litre. In addition, they also get fuel subsidy. Hence, dealers in districts sell milk at MRP, but in Chennai dealers/retailers have no additional earnings except the commission. We are forced to recover the loss from the consumers,” explained Ponnusamy. He also added that dealers were not given receipt for purchasing the milk. When contacted, C Kamaraj, Managing Director, Aavin assured to look into the issue.