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Tamil Nadu dairy supply and pricing issues

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2026-09-26 04:52 UTC → 2026-09-26 05:53 UTC · added ~~removed~~

The dairy sector in Tamil Nadu continues to face supply and pricing challenges. Initially, Aavin, a state-owned dairy cooperative, experienced a 10 to 15 per cent decline in milk sales in Chennai due to an acute shortage of preferred green milk packets. This shortage, which intensified in August, was attributed to inadequate procurement volumes and has affected several districts including Coimbatore, Madurai, and Salem. As the shortage persists, consumers have increasingly turned to private dairy brands. While the government increased Aavin’s procurement price to ₹44 per litre, Aavin’s retail prices remained unchanged, leading to concerns regarding financial stability. By late September, the Tamil Nadu Milk Agents Workers Welfare Association called for an urgent review of Aavin’s retail prices. This follows price hikes by private dairies, including Heritage, Tirumala, ~~and~~ Jersey, and Arokya, which are reportedly increasing milk prices by up to ₹4 per litre and curd prices by up to ₹2 per kilogram. Association president Ponnusamy stated that Aavin is currently losing an average of “more than ₹15 per litre” because retail prices have not been adjusted to reflect rising procurement costs, which include a recent government decision to increase Aavin’s procurement price by ₹6 per litre. The association warned that the widening price gap between private brands and the cooperative could drive consumers toward Aavin, potentially worsening existing milk shortages in the state.

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