CHENNAI: Demand for Aavin milk, priced at Rs 30 per litre and cheaper than private brands, has increased across Chennai and its suburbs. As a result, stocks at retail outlets, Aavin parlours, and franchise outlets are getting sold within three to four hours, forcing a section of consumers to turn to private brands.
Meanwhile, three days after Hatsun, which owns Arokya, announced a Rs 4 per litre hike, other private brands, including Thirumala, Dodla, Heritage, and Srinivasa, also raised prices by Rs 2 to Rs 4 from Saturday.
The price of standardised milk (4.5% fat, 8.5% SNF) has risen to Rs 72 to 74 per litre for private brands, against Rs 44 at Aavin outlets and Rs 46 at retail shops for Aavin’s Green Magic.
Similarly, Aavin’s toned milk, containing 3% fat and 8.5% SNF, is sold at Rs 40 per litre at Aavin outlets and Rs 42 at retail shops. The same variant sold by private companies is priced between Rs 64 and Rs 68 per litre.
S Sudhakar, a resident of Korattur, said, “I used to buy two 500 ml sachets at TNHB Colony outlets. But for the past two weeks, the staff at the outlet and other retail shops say the milk is selling faster. Arokya costs Rs 74 a litre, while Aavin milk is Rs 30 cheaper a litre. The government should take steps to increase the milk supply to Chennai.”
Retailers said demand for Aavin milk has risen, with consumers increasingly opting for the cooperative brand because of the significant price difference. D Renjith, a grocery shop owner in Avadi, said, “When we receive the milk load around 6 pm, the stock would normally be available until 11 am the next day. But nowadays, the milk gets sold out by 9 pm itself.”
According to Aavin, Chennai’s domestic milk demand is around 29 lakh to 30 lakh litres a day, and Aavin, supplying around 14.5 lakh litres daily, meets about 50% of the city’s demand. An Aavin official said that of the 34 lakh litres of milk procured daily, nearly 17 lakh litres are supplied to other parts of the state, while the remaining milk is turned into milk products.
“Due to the huge price difference, many consumers have started buying five 500 ml sachets at a time instead of two or three. As a result, regular consumers arriving at franchise outlets and retail shops are being forced to buy private milk,” he said. The official added that there were currently no plans to revise milk price.
S A Ponnusamy, president of the Tamil Nadu Milk Dealers Labourers Welfare Association, said private brands attributed their decision to hike milk prices to the rise in the government’s procurement prices, leading them to increase the rates paid to milk producers. “Due to the low selling price, Aavin is incurring heavy losses,” he said.
According to data from the National Dairy Development Board, Tamil Nadu produces around 300 lakh litres of milk a day. Aavin accounts for about 12% of the market, procuring 34 to 36 lakh litres daily.
