Tamil Nadu households brace for higher dairy bills as private companies raise milk prices by Rs 2 per liter amid production shortfalls and rising farmer costs. Major players have locked in the increase, impacting retail shelves and consumer wallets across the state.
Pioneering the change, Arokia applied new rates from February 21 for milk and curd alike. Dodla and Jersey quickly aligned. Prices now stand at Rs 78/liter for full-cream (previously Rs 76), Rs 70 for Special Tea milk (from Rs 68), Rs 68 for standardized (from Rs 66), Rs 62 for toned (from Rs 60), and Rs 50 for double-toned (from Rs 48).
Curd adjustments include 1kg packs at Rs 76 (up Rs 2), 450g at Rs 40 (from Rs 38), and double-toned curd at Rs 72/kg (from Rs 70). The hike threatens to strain family finances and small dairy-dependent enterprises.
Faced with steeper prices, consumers are flocking to Aavin, whose milk undercuts private brands by about Rs 18 per liter—Rs 10 for 500ml packs. Aavin’s popularity boom has led to empty shelves, with stocks vanishing as soon as they arrive at retailers.
Dairy experts link the rise to statewide production declines, pushing private firms to offer farmers better rates. Association leader Ponusamy of the Tamil Nadu Milk Agents Workers Welfare group confirmed the retail adjustment follows procurement hikes. He accused Aavin of neglecting production growth efforts and predicted worsening shortages as summer nears. Ponusamy pressed private dairies to boost agent commissions accordingly.