STOCK MARKET BSE NSE

Aavin's Milk Just Got Dearer by Rs 10 a Litre

Price hike to kick in from November; OPS says it was inevitable because of rise in production cost, blames DMK govt for the financial mess in Aavin

Published: 26th October 2014 06:03 AM  |   Last Updated: 26th October 2014 07:56 AM   |  A+A-

CHENNAI: Chief Minister O Panneerselvam on Saturday announced that the State government is left with no option but to increase the price of a litre of milk sold by Aavin from Rs 24 to Rs 34. He said the increase was made inevitable by rising milk production and procurement costs, changing market dynamics and poor financial state that the previous DMK government had left Aavin in.

milk.JPGPanneerselvam said the hike in milk price, the first in three years, would benefit producers, enabling Aavin to not only counteract rising production costs, but also ensure timely payment to milk producers. He added that the hike would translate to an increase in the procurement price of cow’s milk from Rs 23 to Rs 28 and buffalo milk from Rs 31 to Rs 35, and the new price would come into effect from November 1.

The Rs 10 hike, he said, would also cover the processing and marketing costs of Aavin. “However, despite this hike, the cost of milk sold by Aavin will be lower than the price at which it is sold by private players and milk cooperatives in other states,” he said.

Sources in the State government said the hike had become unavoidable. “We have to take it into account the unprecedented hike in the production cost of milk which includes a steep increase in the price of cattle feed,” said an official, noting that even after the hike, Aavin’s price would be lower than the price of other milk unions, particularly that of Amul, which sells milk at Rs 38 per litre.

“The hike will benefit farmers. Milk procurement by Aavin has been dwindling because of the low procurement price, which forced milk producers to start selling milk to private players,” the official added.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp