At a time when an increase in power tariff is looming large, the Tamil Nadu government increased the prices of all Aavin milk varieties by Rs. 10 a litre.
The hike will come into effect from November 1.
The retail price of toned milk, the popular variety, will go up by 40 per cent, from the current rate of Rs. 24 to Rs. 34.
Making the announcement through a statement, Chief Minister O. Panneerselvam said the procurement prices of cow and buffalo milk would also go up by Rs. 5 and Rs. 4 a litre. This meant Aavin would buy cow milk at Rs. 28 a litre and buffalo milk at Rs. 35.
He said the increase in the retail prices was meant to recover the rise in the procurement prices and the cost of processing. Even after the latest increase, the retail prices in the State would be lesser than the rate of toned milk being sold by private dairies and other State cooperative federations, he pointed out.
Referring to the demand of the dairy farmers for hiking the procurement prices because of the increase in input cost, Mr. Panneerselvam said the increase in the procurement prices would benefit 22.5 lakh milk producers.
Pointing out that the private dairies had also increased the procurement prices, he recalled that when the government, in January this year, hiked the procurement prices by Rs. 3 a litre, there was no hike in the retail prices. The previous increase was made in November 2011.
Published - October 25, 2014 01:26 pm IST
