Private dairies lift retail milk and curd costs as procurement prices climb and production tightens across South India.
Private milk companies in Tamil Nadu have implemented a retail price increase of ₹2 per litre across most liquid milk variants — a move that has reverberated through household budgets and daily consumption patterns. The hike, initiated by Arokya on February 21 and quickly followed by other major brands including Dodla and Jersey, reflects mounting cost pressures within the dairy supply chain, notably rising procurement costs from farmers.
Under the revised pricing structure, key retail milk categories have climbed uniformly: full-cream milk now sells at ₹78 per litre, special tea milk at ₹70, standardised milk at ₹68, toned milk at ₹62 and double-toned milk at ₹50. Curd products have also seen adjustments, with one-kilogram packs rising to ₹76 and 450-gram packs to ₹40, while double-toned curd now retails at ₹72 per kilogram.
Industry sources attribute the adjustments to a decline in milk production within the state, which has exerted upward pressure on farmgate prices and compelled private dairies to pay farmers more for raw milk. With procurement rates reportedly rising significantly — though official figures vary — dairies are passing cost increases through to consumers to maintain margins amid tightening supply ahead of summer.
The price gap between private brands and the state-run cooperative Aavin has widened substantially, with Aavin’s milk priced about ₹18 per litre lower than private counterparts. This disparity has driven a notable shift in consumer demand toward Aavin products, leading to stock shortages at several retail outlets as shoppers seek more affordable dairy options in the wake of the hikes.
Milk agents and workers have also reacted to the situation, urging private companies not only to raise retail prices but also to increase commissions for agents in light of higher operating costs. Meanwhile, critics argue that Aavin’s lag in adjusting procurement prices may have dampened overall milk production, potentially exacerbating supply constraints ahead of the hotter months.
Source: dt Next — https://www.dtnext.in/news/tamilnadu/private-milk-prices-hiked-by-rs-2-per-litre-in-tamil-nadu
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