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.
