Private dairy companies in Tamil Nadu have jacked up retail milk prices by Rs 2 per liter, pointing to shrinking production and soaring costs of procuring milk from farmers. This change is already in effect for major brands, set to squeeze household budgets and hit small businesses reliant on dairy products hard.
Arokia was among the first to roll out the hike on February 21, increasing prices for both milk and curd. Soon after, heavyweights like Dodla and Jersey followed suit. Full-cream milk now costs Rs 78 per liter, up from Rs 76, while ‘Special Tea’ milk has risen from Rs 68 to Rs 70. Standardized milk jumped from Rs 66 to Rs 68, toned milk from Rs 60 to Rs 62, and double-toned from Rs 48 to Rs 50 per liter.
Curd prices haven’t escaped the revision either. A one-kilogram pack is now Rs 76, previously Rs 74, the 450-gram pack has gone up from Rs 38 to Rs 40, and double-toned curd per kilogram is Rs 72 after a Rs 2 increase from Rs 70.
The price surge has driven many consumers toward the state-run Aavin cooperative, which offers milk at rates nearly Rs 18 cheaper per liter—about Rs 10 less for half a liter. Demand for Aavin products has skyrocketed, leading to stock shortages in several retail outlets where supplies sell out almost instantly upon arrival.
Industry insiders attribute the hike to declining milk production across the state, forcing private dairies to pay farmers higher procurement rates. Ponusamy, President of the Tamil Nadu Milk Agents Workers Welfare Association, noted that private firms raised retail prices after boosting what they pay dairy farmers. He criticized Aavin for not taking steps to ramp up production and warned that output is already dipping before summer hits, with worse to come in the months ahead. Ponusamy also urged private companies to increase commissions for milk agents in light of the new retail pricing.