Aavin is the cheapest cooperative milk brand in India

Milk and Dairy Development Minister R S Raja Kannappan on Wednesday informed the Assembly that Aavin milk is the most affordable among all state-owned cooperative brands, including Amul, Nandini and Milma, as well as private brands, with the price difference ranging from Rs 6 to Rs 16 per litre. He added that Aavin can ensure an adequate milk supply for all only if daily procurement increases from the current 36 lakh litres to 56 lakh litres.

During discussions on the demands of grants for his department, Kannappan highlighted Aavin’s competitive pricing. He said Aavin sells toned milk at Rs 40 a litre, compared to Rs 48 by Nandini, Rs 46 by Milma and Rs 54 by Amul. Similarly, Aavin’s standardised milk variant is priced at Rs 44 per litre, whereas Nandini charges Rs 56, Milma Rs 54 and Amul Rs 60. For full cream milk, Aavin sells it at Rs 60 per litre and Rs 48 per litre for cardholders, while Nandini, Milma and Amul price their full cream milk at Rs 62, Rs 68 and Rs 66 per litre respectively.

Efforts are under way to increase milk procurement to 56 lakh litres per day to revive 300 dormant primary milk producers’ cooperative societies, Kannappan said. He also mentioned that 18 dairy projects, with a total investment of Rs 1,800 crore, are currently at various stages of implementation across the state. “Upgradation of dairy plants is in progress at Salem, Namakkal, Thanjavur, Thoothukudi and other locations. These projects are expected to be completed before 2026, positioning Aavin as a major dairy brand in the country,” he added.

To boost milk procurement, the state government has been providing an incentive of Rs 3 per litre to milk suppliers since December 2023. “As of March this year, a total of Rs 324.14 crore has been disbursed, benefiting four lakh farmers,” the minister stated.

Kannappan further noted that Aavin’s milk products generate annual sales of Rs 560 crore. “To expand its product range, Aavin has introduced new items, including sweets, cookies and bread. Currently, Aavin produces ice cream at its Salem, Madurai and Erode dairies, while the Tiruchy plant is being upgraded to produce 60,000 litres of ice cream,” he added.

Providing further details, he stated that Aavin produces 90 tonnes of skimmed milk powder and 40 tonnes of ghee daily. “Although Aavin’s ghee is more expensive by Rs 50, it is in high demand in the United States. Aavin products are also exported to countries such as Singapore, Qatar and others,” he concluded.

Dairy-related announcements

1. A genetic improvement initiative to boost milk production in Nagapattinam’s Umblachery native cattle breed will be undertaken at a cost of Rs 1.94 crore under the National Milk Recording Programme (NMRP)
2. Loans worth Rs 2,000 crore will be facilitated through the Kisan Credit Card to support 3.79 lakh dairy farmers in setting up shelters and covering medical expenses for milch cows
3. 500 Aavin parlours will be established at a cost of Rs 10 crore
4. 525 primary milk producers’ cooperative unions will be computerised at a cost of Rs 2.63 crore
5. To provide instant acknowledgment slips to milk suppliers, cloud-based milk analysers and other infrastructure will be installed at 1,437 primary milk societies
6. District milk unions will identify and reward the three highest milk-yielding milch cows, with Rs 15 lakh allocated for the initiative
7. Training on milch cow maintenance will be provided to 12,000 farmers at a cost of Rs 60 lakh