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‘Aavin’ facing huge losses to the tune of several Crores of Rupees – this may lead to increase in milk price!
Posted on: 19/May/2014 3:37:07 PM
Over the last few months, there have been demands from various avenues asking for a price rise in Aavin milk. The government is set to announce shortly on in increase in the price of Aavin milk.
Tamil Nadu distributes over 22,30,000 litres of Aavin milk daily, The milk is gathered from the 18 milk cooperative unions.
Details about the loss
Aavin sells 11,30,000 litres daily in the city of Chennai. The daily distribution in all other districts total to 10,00,000 litres.
7,10,000 litres are distributed to card-holders. 4,30,000 litres are sold through the distributors.
Tamil Nadu government raised the buying price of milk by Rs. 3/- per litre from 1st January. However, the price of milk sold was not increased. Due to this, Aavin has incurred a loss of Rs. 67 lakhs every day.
However, citing the instance of buying rate increase, the private milk sellers have increased the prices 4 times during the last few months. The price of the private sellers has increased that it costs Rs. 9/- to Rs. 12/- as compared to Aavin milk. This has created a spurt in demand for Aavin milk.
Meanwhile, the middlemen in the sales of Aavin milk have raised the prices of Aavin milk on their own.
An official Aavin informed that the malpractices and the bad practices of the middlemen will be exposed only if the Aavin milk price was raised. Efforts are taken to eliminate all bogus milk cards. However, it is up to the state government to announce the price increase.
Crisis
The milk producers’ federation feels that the state government should come forward to bear the losses incurred by Aavin. If the price of Aavin milk is not raised, there will be a crisis plunging the milk producers into debts.
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