Even after upward revision in the selling price of toned milk, the Tamil Nadu Co-operative Milk Producers' Federation (‘Aavin') will still stand to lose Rs. 1.8 per litre.
Till now, the cost of production of toned milk has been around Rs. 23.8 per litre, whereas the cost recovery from consumers is Rs. 17.75 per litre.
After the hike in procurement price paid to dairy farmers, the cost of production has gone up by Rs. 2 per litre. In effect, it is Rs. 25.8 per litre. However, the revised selling price of toned milk is Rs. 24.
Toned milk accounts for 60 per cent of different types of milk sold in Chennai. Of about 10 lakh litres distributed every day in the city, toned milk accounts for six lakh litres a day. In the remaining parts of the State, where another 10 lakh litres is sold, one lakh litres of toned milk is distributed.
Sources say that the price of toned milk supplied by ‘Aavin' is still cheaper compared to that of private players and official agencies of other southern States.
In the case of other brands, the rate ranges between Rs. 28 and Rs. 30 a litre. In Andhra Pradesh and Kerala, the price of toned milk supplied through agencies of the respective State governments is Rs. 28. As for the procurement price paid to the farmers for cow milk, the rate of Rs. 20 per litre is higher than what is given in Andhra Pradesh, where it is of the order of Rs. 18 to Rs. 19 per litre. In Karnataka, the authorities pay Rs. 17 to Rs. 20 per litre.
The sources add that the State government has been providing to ‘Aavin' an assistance of Rs. 17 crore a month to ensure its smooth functioning.
Keywords: Aavin, milk price
it is funny how people react to things. Government is trying to guarantee a profit for the farmer/set fair price for public, hence price fixing. When milk price is increased everybody is blaming the Govt for mismanagement/corruption. In my opinion, everything should be set by the market. Just look at the price of gold. I dont hear anyone complain about prices of gold going up. Now if price of gold had been set by the govt then i am sure everyone would have complained. I am sure there is corruption/mismangement but i think govt has to get out of most places where they interfere with the markets. We will get better quality product at reasonable prices.
why susidising to the extent of Rs 1.8 per liter while part of the same is being sold to Tea shops and part goes along with private milk to vendors only, thereby govt is not achieving its goal to supply good milk milk cheap.Aavin being a co operativesociety must function rather at least no profit no loss basis, to sustain,otherwise,the continuance of the same becomes dificult.Employees of the society has to discuss themselves and to get the best rate for their milk as well.
I agree with Arunachalam in toto.
Moreover the revised price for card holders will be effective from next cycle i.e.Dec.16th or immediate that is not clarified any where.
Who will collect the difference in price if it is asked for immediate effect.
The TN bus fair, milk and Electricity price hike is very high. TN people will going to suffer. We need a normal life and don't want any free gift
Pls, Don't blame to central and the previous govt. think your self
political interference & miss management are the main reasons, Aavin is incurring loss for the past several decades. If proper Audits will be conducted every thing will come out and the losses will not be so much.The purchase of machineries, raw materials, executives expenses and contracts given to the transporters should be verified with the market rates. But the Govt. will not take steps in these aspects, they can increase the milk cost and put the burden on the common people
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