Private vendors plan to increase the retail prices of milk

Private milk vendors in Tiruchi plan to raise retail prices of milk due to Aavin increasing prices of 5-litre packets. Pressure from farmers and other costs have led vendors to increase procurement prices, which will be passed on to customers. New rate of ₹50/litre to come into effect from Sept 1.

Private milk vendors plan to increase the retail selling prices of milk in Tiruchi.

The move comes in the wake of the Tamil Nadu Cooperative Milk Producers Federation, popularly known as Aavin increasing the prices of 5-litre standardised milk packets. As per the announcement that came into effect on Saturday, the prices of 5-litre green magic (standardised milk) have gone up to ₹220 from ₹210. As per the present prices, a one-litre packet of standardised milk is sold at ₹44.

While rumours were doing rounds that Aavin was set to increase the standardised milk prices, it had chosen to increase the prices of 5-litre packets only, which were mainly supplied for commercial purposes. It is said that Aavin was forced to increase the prices as it was facing pressure from the members of the cooperative milk unions to increase the procurement prices.

According to industry sources, one litre of milk is sold between ₹44 and ₹46 by the private milk vendors. The prices varies from vendor to vendor. It is said that the private vendors were said to have increased the procurement prices by ₹2 to ₹3 a litre recently, thereby increasing pressure on them to increase the retail prices of milk. Hence, they have planned to increase the prices by₹3 to ₹4 a litre.

“Most of the milk vendors have increased the procurement prices as we were facing extreme pressure from the farmers to increase the prices. Other costs related to milk extraction, transportation and others have also gone up. Hence, we have no other options but for increasing the retail prices of milk,” M. Muthuraman, a milk vendor in Cantonment.

He said that several vendors had increased the procurement prices of milk from ₹38 and ₹.40 to ₹40 and ₹42. The added cost would have to be passed on to the customers. “The fresh rate of milk to my customers will be ₹50 a litre. I have already informed my customers. The new rate will come into effect from September 1. Similarly, several other vendors have also decided to increase the milk prices.