In a move that’s rippling through kitchens and markets, Tamil Nadu’s private dairy giants have increased milk prices by Rs 2 per liter. Citing reduced output and escalating farmer procurement costs, brands like Arokia, Dodla, and Jersey have implemented the hike, affecting everything from full-cream to toned varieties.
The adjustment kicked in swiftly—Arokia led on February 21, with others close behind. Full-cream milk is now Rs 78/liter (was Rs 76), Special Tea milk Rs 70 (from Rs 68), standardized Rs 68 (from Rs 66), toned Rs 62 (from Rs 60), and double-toned Rs 50 (from Rs 48). Curd has seen similar bumps: 1kg packs at Rs 76 (up from Rs 74), 450g at Rs 40 (from Rs 38), and double-toned curd at Rs 72/kg (from Rs 70).
Households and small vendors are feeling the pinch, but savvy shoppers are switching to Aavin, the government cooperative selling milk at roughly Rs 18 less per liter. This gap—Rs 10 for half-liters—has fueled a buying frenzy, causing rapid sell-outs and supply crunches at stores statewide.
Sources in the dairy sector explain that lower production volumes mean private players must shell out more to secure supplies from farmers. Tamil Nadu Milk Agents Workers Welfare Association President Ponusamy highlighted how companies passed on higher procurement costs to consumers. He slammed Aavin for inaction on boosting output, cautioning that pre-summer production drops signal tougher times ahead. Additionally, he called on private dairies to revise agent commissions upward to match the retail escalation.