Rising costs and falling supplies have prompted Tamil Nadu’s private dairies to bump up milk prices by Rs 2 per liter. With production dipping and procurement expenses climbing, companies like Arokia, Dodla, and Jersey have enacted the change, reverberating through homes and local markets.
Arokia moved first on February 21, revising rates for milk and curd. Full-cream is now Rs 78/liter, up from Rs 76; Special Tea milk Rs 70 from Rs 68; standardized Rs 68 from Rs 66; toned Rs 62 from Rs 60; double-toned Rs 50 from Rs 48. For curd, 1kg packs hit Rs 76 (was Rs 74), 450g Rs 40 (from Rs 38), double-toned Rs 72/kg (from Rs 70).
The shift is poised to inflate daily expenses for families and challenge small businesses hooked on affordable dairy. In response, demand for Aavin—the state’s co-op brand—has exploded. Priced Rs 18 lower per liter (Rs 10 for half-liters), Aavin products are flying off shelves, sparking shortages as deliveries get snapped up instantly.
Stakeholders point to reduced milk yields forcing private dairies to pay premiums to farmers. Ponusamy, head of the Tamil Nadu Milk Agents Workers Welfare Association, explained the price pass-through after procurement upticks. He rebuked Aavin for failing to expand output and flagged early production slumps that could intensify with heatwaves. He also advocated for higher commissions to milk agents amid the retail upswing.