TN contemplating increasing the procurement costs, Aavin prices might go up
Posted on: 02/Aug/2019 10:04:50 AM
On Wednesday, a delegation of milk procurement cooperatives called on the chief minister of TN, Mr. E. Palaniswami and sought a hike in the prices. The information is state government has got plans to increase the selling prices of Aavin milk.
It must not be forgotten that in the recent assembly, state dairy development minister, Mr. K.T. Rajendra Bhalaji, caught the attention of many when he spoke about the increase in the procurement prices. The point to be noted is once the procurement price increase the government would also increase the selling price.
In the year 2014, the government increased the price of the milk and the price per litre of milk went up by Rs 10. Since the year 2014, the maintenance cost of the cows has become more. Presently, a cow costs no less than Rs 40,000 and the cost of the straw has increased from Rs 120 per 25 kg in 2014 to Rs 250 now. In the last 5 years of time, the cost of producing a litre of cow milk has increased by 63 % and this was later confirmed by TN Milk Producer�s Welfare Association general secretary, Mr. G. Rajendran.
He then explained about how the association wanted the government to increase the cow milk procurement price from Rs 27 to Rs 42 (Rs 15 per litre hike) and buffalo milk from Rs 29 to Rs 50 ( Rs 21 per litre hike). He added how the government would increase the procurement price of the milk after having discussions with the officials and how this has been assured by the chief minister of TN. Mr. Rajendran then hinted that the decision would be taken after the Vellore elections.
According to a senior official, a decision has been taken to increase the procurement and selling of milk and it could be Rs 10 to Rs 15 per litre. After the model code is lifted for Vellore elections, official announcement would be made. He later shed light on how if the procurement prices alone were increased without increasing the selling price then it would be very difficult for Aavin as its finances would be badly affected. The senior official later highlighted about the increase in the prices of other milk products like butter, ghee, ice cream and sweets and said the prices of these would also shoot up. It is known that Aavin sells nearly 30 lakhs litres in Chennai and in other nearby places.
