In yet another blow to common people, the cost of a 5-litre pack of Green Magic milk of Aavin has been increased by ₹10 by the DMK government, leaving the public in a state of shock. Fears are now mounting that this price hike could potentially trigger an increase in the cost of tea and coffee in hotels and eateries across Tamil Nadu.
Tamil Nadu’s state-run dairy enterprise, Aavin, has garnered immense popularity due to its competitive pricing when compared to private milk producers. However, recent developments have raised concerns about the supply of cow’s milk, particularly in cities including Chennai.
A few weeks ago, the state witnessed a significant decline in milk supply attributed to reduced daily procurement by Aavin. The New Indian Express reports that there has been a decrease of 9 to 10 lakh litres of daily milk procurement in Chennai in the month of March, and residents in the southern, eastern, and suburban areas have experienced delays in deliveries.
The shortage was attributed to reduced milk procurement. It was recently reported that the price of milk will be increased to increase procurement price. Since then the price of milk products has increased significantly.
Apart from selling milk, Aavin also sells more than 225 dairy products like butter, ghee, curd, Palkova, ice cream, sweets, and biscuits. Subsequently, the prices of products like ghee were also increased. Recently the price of Aavin Paneer and Aavin Badam Powder has also been hiked.
Adding to the recent developments, the cost of the popular Green Magic milk packet has witnessed an increase. The price of a 5-litre packet of Green Magic milk has been increased by ₹2 per litre by the DMK government. As a result, the price of a 5-litre green milk packet, which was sold at ₹ 210 so far, has been increased by ₹ 10 and is now being sold at ₹220.
The 5-litre milk packets are predominantly purchased by tea shops and restaurants for their daily operations. The recent hike in milk price by the DMK government has evoked apprehensions that this could set off a chain reaction, resulting in higher prices for tea, coffee, and related products. Just recently, the price of yogurt witnessed an increase of ₹10 per litre.
Adding to the turmoil, it has been reported that the quantity of curd in a 120-gram pack has been reduced to 100 grams from the earlier standard. The persistent price hikes across various Aavin products have sent shockwaves through the public.
This isn’t the first instance of price increases from Aavin. In November 2022, the DMK government decided to raise the retail price of the Orange packet Aavin milk (pasteurized full cream milk) by ₹12 per litre. This was in direct response to an earlier government-led increment of ₹3 in the procurement price of milk.
(with inputs from Samayam Tamil )
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