CHENNAI: With the hike in the price of milk coming into effect from tomorrow, the cost is likely to drill a hole in the purse of the budget conscious, besides habitual teetotallers. For it’s not just the milk, even the cost of its by products including curd, ghee, butter and cheese are likely to spiral. The increase can have a cascading effect on other products like sweets and ice cream.
The maximum retail price is common for all sales channels but milk is given to distributors at different rates. This also should be made even, says a milk dealer. According to sources in the Tamil Nadu Milk Dealers’ Employees’ Welfare Association, the difference in price between Aavin milk sold through cards and over the counter should be done away with. Those buying with the cards get it at a slightly lesser price. If only the difference is removed, then it could help to contribute towards paying the farmers. Besides, the move will weed out illegal cards from the system, he said.
The State government on Saturday announced an increase in the prices of buffalo milk by Rs. 6 per litre to Rs. 41 per litre and Rs. 4 per litre to Rs. 32 per litre for cow milk. The increase in prices will be effective from August 19. Recently, Chief Minister Edappadi K. Palaniswami hinted in the State Assembly that procurement prices would be hiked soon and the selling price of State-owned Aavin would have to be increased. He hoped the opposition parties would not make a hue and cry over the price rise.
As per the daily milk demand of 1.5 crores litres of milk, the public has to depend upon the private milk producers for around 83.4 % of the demand. Aavin caters to meet only 16.6 % of the daily demand of Tamil Nadu people. In addition, tea stalls (around 95 %) buy only from the private suppliers, say sources in the Tamil Nadu Milk agents and Employees Welfare Association.
