Tamil Nadu Sees Rise in Milk and Curd Prices as Private Dairy Companies Increase Rates

Consumers in Tamil Nadu are facing another increase in the prices of milk and curd, as several private dairy companies have revised their rates for the second time this year. The price hike comes amid a decline in milk production and rising procurement costs across several states.

Milk production has reportedly fallen not only in Tamil Nadu but also in neighbouring states such as Andhra Pradesh, Telangana, Karnataka, Kerala, and Puducherry. To secure adequate milk supplies, private dairy companies have increased the prices they pay to milk producers.

As a result, leading private dairy brands have raised the prices of milk and curd by ₹2 to ₹4 per litre. The increase is attributed to higher milk procurement costs and rising raw material expenses.

Despite the price revision, milk distributors have pointed out that their commissions and incentive payments have not been increased, even as operating costs such as fuel, shop rent, and employee salaries continue to rise.

With private milk prices increasing by up to ₹6 per litre this year, many consumers are expected to switch to Aavin milk, which remains comparatively affordable. This could lead to a higher demand for Aavin products and the possibility of a milk shortage unless production is increased.