Increase depending on quality
Coimbatore: Tamil Nadu Dairies Association (TNDA) has increased milk price from Re 1 to Rs. 2 per litre with effect from February 1.
The amount accrued from the increase will go to the farmers directly. It is six years since the milk price was increased.
A. Samiappan, president and R. Rajasekaran, secretary of TNDA (which has 25 processing and chilling plant owners as members with a handling capacity of around six lakh litres per day) said in a press release that the organised players in the dairy market (selling branded milk) would be implementing the price hike.
"Toned milk, standardised milk and cream milk are the three different varieties sold in the market. The price of toned milk (with three per cent fat and 8.5 per cent of solid non fats), widely consumed by people, will increase from Rs. 4 to Rs. 4.50 for 250 ml, Rs. 7.50 to Rs. 8 for 500 ml and Rs. 15 to Rs. 16 for one litre,'' they said.
Based on the quality of milk, it was purchased at Rs. 8.50 to Rs. 9 and its processing cost was approximately Rs. 4 per litre. "From Thursday the purchase price of milk was increased to Rs. 9.50 or Rs. 10 besides the processing cost going up steeply. The price of standardised milk used in hotels and coffee shops (containing 4.5 per cent fat and 8.5 per cent solid non fats) was increased to Rs. 4 for 200 ml (earlier price Rs. 3.50); 500 ml price was increased to Rs. 9 (earlier Rs. 8) and the price of one litre was increased to Rs. 17.50 (earlier Rs. 16) from Thursday. The price of cream milk containing 6 per cent solid fat and 9 per cent solid non-fats was increased to Rs. 20 for one litre (earlier price Rs. 18),'' Mr Samiappan and Mr Rajasekaran said.
In the last four years, expenses for fodder and veterinary care had risen to a great extent. Lack of staff and salary increase for employees in the last four years made the price hike imperative. Recent increase in exports of milk powder and other milk products from State was also another reason. "In Tamil Nadu 65 lakh litres of milk are produced every day. Around 42 lakh litres are packed and sold as branded product. Thirteen lakh litres of milk are non-processed and sold in the unorganised market. The balance 10 lakh litres are used by dairy farmers themselves. Every year we witness four per cent growth in milk production. Now owing to increase in purchase price we expect the farmers will be encouraged to produce more which will result in seven to eight per cent growth in production," they said.