Fix minimum and maximum prices for milk, industry appeals to T.N. government
Milk industry stakeholders in Tamil Nadu are urging the state government to regulate retail prices to protect consumers from rising costs. The demand follows price hikes by private brands and concerns over Aavin's procurement levels compared to other cooperatives.
Why it matters
It highlights the economic tension between maintaining affordable food prices for consumers and ensuring sustainable procurement prices for dairy farmers.
Milk distributors, vendors, farmers, and consumers have urged the State government to fix the minimum and maximum retail prices for milk. They say the Milk Commissioner, who also heads Aavin, should fix the prices to ensure that consumers are not affected. The demand comes in the wake of several private brands increasing milk prices.
Other cooperatives such as Amul, Nandini, and Milma have also increased milk prices owing to a shortage of milk caused by extreme weather conditions. When dairies face a shortage of milk, they procure butter and milk powder and reconstitute them to produce milk. Though this is a common practice in the dairy industry to ensure the prescribed fat and solids-not-fat (SNF) content in milk, sources familiar with the matter say that Aavin has become increasingly dependent on this practice in recent times.
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