Aavin proposes Rs 5 per litre milk price hike, awaits state nod

Tamil Nadu’s cooperative milk supplier Aavin has recommended a Rs 5 per litre increase in retail milk prices, citing financial pressure on its operations and difficulties faced by outlet operators. The revision will take effect only if the state government approves it. Aavin sources said Rs 4 from the increase would go to the cooperative, and Re 1 would benefit outlet operators.

Aavin procures about 35 lakh litres of milk daily, with Chennai alone accounting for around 15 lakh litres in sales. Currently, a 500 ml orange milk packet costs Rs 30, a green or purple packet Rs 24, and a blue packet Rs 20. Outlet operators receive a commission of just 75 paise per packet, which they say is insufficient to cover electricity, rent and other expenses, leading to new outlets shutting down within months across several districts.

The price gap with private brands, which sell milk at over Rs 75 per litre, has pushed commercial buyers such as hotels and tea shops toward Aavin, sometimes leaving retail outlets short of supply for households. The government’s recent increase in procurement prices has helped farmers, Aavin sources said, but the cooperative and its retail network still need relief. For now, the Rs 5 increase remains a proposal, and existing prices continue to apply pending a government decision.