In a “cost-cutting” move, the state-owned Aavin has decided to halt the sale of standardised milk (green packets) across the state from 25 November 2023. The green pack also referred to as Green Magic, a popular variant for over 40 years, holds a 40% market share in Chennai, with Aavin supplying 14.75 lakh litres.
As part of this change, retail consumers and cardholders will now receive Delite milk (purple pack), featuring a lower fat content of 3.5% compared to the 4.5% in the Green Magic category, according to an official directive released on 17 November 2023. Both Delite and Green Magic variants will be priced at a maximum retail price of ₹44 per litre, while other private brands in this category range from ₹54 to ₹56 per litre.
V Alin Suneja, GM (Marketing) at Aavin, mentioned that milk cardholders would receive Delite milk at the same price (₹42/litre) as Green Magic, effective from 1 December 2023.
Starting December 1, Aavin will implement Delite milk card sales and initiate distribution from 16 December 2023. Standardised milk (SM) cardholders will be required to transition to one of the three other variants—toned, Delite, and full cream milk—offered by Aavin from 1 December 2023, as per an official communication.
Aavin milk cards are typically sold between the 1st and 15th of each month, facilitating milk supply from the 16th to the 15th of the following month. Although retail market sales will cease from 25 November 2023, current SM cardholders will continue to receive Green Magic packets until 15 December 2023.
As reported by The New Indian Express, official documents accessed by them revealed that Aavin incurs a monthly expenditure of ₹65-70 crore to purchase butter for reconstituting its milk, maintaining lower fat content compared to private brands, in adherence to FSSAI standards. Toned milk should contain 3% fat, standardised milk 4.5%, and full cream milk 6%.
Consumers speaking to TNIE express concerns, stating that by replacing Green Magic with Delite, they are indirectly increasing the price of milk. Industry insiders told TNIE that Aavin holding about 20% of the dairy market share in the state, should not discontinue milk variants that have existed for years. Some argue that the government’s hesitation to adjust milk procurement and selling prices may lead consumers to opt for pricier full-cream milk or private brands.
Earlier this month The Commune had reported about the press meet of TN milk dealers association head Ponnusamy who had levelled allegations of a scam against DMK Minister Mano Thangaraj regarding the same issue. Speaking to the media, he said that the Green Magic variant had been largely removed from circulation across most parts of Tamil Nadu and substituted with the Delite variant. Additionally, he raised concerns about the decrease in fat content in the milk, alleging that the DMK government was indirectly hiking the price of milk through this measure.
Aavin has been consistently making headlines since the DMK assumed power. These include the reduction in milk procurement, price hikes across all products, and the alleged employment of child labourers at Aavin factories.
(with inputs from The New Indian Express)
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