The recent increase in the price of State-run Aavin milk has pushed the private players to increase procurement and sale prices.
Industry sources said the second largest brand in the milk market in the State will be hiking prices by ₹2 a litre. Aavin controls around 43 to 44% of the market. The next brand holds around 13-14% of the market. From Sunday, September 14, a litre of full cream milk of this brand would be ₹60, whereas Aavin sells it at ₹51 a litre. “If we have to supply quality milk to consumers, we have to procure quality milk and the dairy farmers are demanding a hike in procurement price after Aavin increased their rates. Other brands too will follow suit shortly,” said a senior official of the company.
The State-level coordinator of another brand said that private brands had been hiking milk price by ₹2 a litre over a period of time.
S.A. Ponnusamy of the Tamil Nadu Milk Dealers Employees Welfare Association said that the ultimate sufferers in this price war was the consumer. “Already we are witnessing a drop in purchases,” he said.
