Private firms hike price for uniformity, Aavin becomes cheapest milk available

Private milk companies raised the prices of Standardized and Full cream milk by Rs. 2 and Rs 4 per litre effective from Monday.
Image for representational purpose only. ( File | EPS)
Image for representational purpose only. ( File | EPS)

CHENNAI: A few days after Hatsun Agro Products increased the prices of ‘Arokya’ milk, one of the largest private milk brands in the State, eight private companies increased milk prices by Rs.2 and 4 a litre. Among them, a few companies raised the prices for the second time in the last 23 days.

With this, nine private milk brands is to have uniform rate for full cream milk - which contains 6 per cent fat and 9 per cent solids not fat (SNF) to cost Rs. 60 a litre. The brands names of private milk companies are Heritage, Arokya, Jersey, Thirumala, V.K.A, S.N.P, Thamizh, Amirtha and Raaj.  

Similarly, standardised milk variant in which fat content is maintained at 4.5 percent and S.N.F at 8.5 per cent is to be sold at Rs. 52 to 54 a litre. The price of tonned milk is to cost Rs. 47 to 48 a cent. The minimum fat and SNF content in this milk is 3 per cent and 8.5 per cent respectively.

While the revised prices of a few milk brands already came into effect from Thursday, Heritage and Thirumala milk will be sold for higher prices from September 23, said the official statements from the private companies sent to milk distributors.

With the revision of price hike of private milk companies, State-owned Aavin becomes the cheapest milk in the market now.

“Though Aavin milk being sold for Rs. 3 higher than the Maximum Retail prices fixed by government tonned and standardised milk to cost lesser by Rs. 2 to 4 a litre as against the private brands. The full cream milk to become cheaper by Rs. 6 per litre,” said official sources.  

The Chennai city’s per day milk demand is 25 to 26 lakh litre of which 12 to 13 lakh litre being catered by private milk companies – mostly for hotels and tea shops. The Aavin supplies about 12 lakh litre a day.  

S A Ponnusamy, State president, Tamil Nadu Milk Dealers Welfare Association said, "The private companies procure the milk much lesser prices than Aavin, but sells for 10 percent higher rates. The government should create price regulatory mechanism for private milk companies and increase the milk production of Aavin,".

T Ananthan, the president of Chennai Metropolitan Tea Shop Owners' Association (CMTSOA), said “The prices of full cream milk increased by 6 a litre in the last 25 days. Decision on increasing the tea and coffee prices will soon be taken,”.

Prices of milk per litre in Chennai  (in Rs)
Milk Variety% of fat and SNF (solids not fat)Aavin  (market price) *Private milk **
Tonned Milk3  & 8.54647 to 48
Standardised 4.5 & 8.5 5052 to 54
Full Cream milk

6&9

5460

*Aavin’s market price is Rs. 3 higher than MRP

** Private milk brand names are Heritage, Jersey, Thirumala, V.K.A, S.N.P, Thamizh, Amirtha and Raaj.

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