Private dairies to hike milk by ₹2 and curd by ₹5/kg
Your morning coffee or tea could get dearer this week, with many private dairies increasing milk prices by 2/litre. These are the second set of companies to hike milk prices this year. Curd prices will rise by 5/kg.
Taking a cue from dairies in neighbouring states, which announced hikes earlier this year, Tamil Nadu Dairy Owners Association, which comprises dairy owners in Tamil Nadu and Puducherry, met last week to announce a price hike due to increased milk procurement, raw material, and distribution costs.
Accordingly, Ruchi Dairy from Puducherry will increase prices on Thursday, while Tamil Nadu-based dairies such as Veda, Vijay, and Yuga will do so on Friday. Other private dairies, including Raj, Amirtha, Aadhan, Chakra, Tamil, Bharat, SNP, SPS, and PRS, will follow on Saturday.
Some companies are also reducing pack sizes for instance, 500ml and 1 litre packs will be downsized to 450ml and 950ml, respectively effectively raising prices indirectly.
Graphic courtesy-TOI Chennai Feb 13th 2025 by Ram Sundaram
"There is literally no control over private milk companies in the state. Seldom is there any control or checks on their quality either. We need a regulatory authority to keep the prices of essential commodities such as milk under control," said consumer rights activist T Sadagopan. Unlike state-run Aavin, which controls just 16% of the market, private dairies dominate with 84% and operate without govt regulation.
But, as a result of these repeated hikes by private companies, more consumers are switching to Aavin milk, leading to an increase in demand, said Tamil Nadu Cooperative Milk Producers Federation (TNCMPF) officials. According to official data, Aavin now sells around 30 lakh litres of milk a day on average, up from about 25 lakh last year.
Given this trend, Tamil Nadu Milk Dealers Welfare Association has urged Aavin to ramp up production of its standardised (green) and full cream (orange) milk packets. It called on Tamil Nadu govt to increase procurement prices for milk producers, raise commission rates for milk agents to match private dairies, and adjust Aavin's selling prices accordingly to strengthen its market position.