TN milk price hiked by Rs 10/litre

Satvijay

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CHENNAI: The new Tamil Nadu government served the first bitter pill to the people on Saturday by hiking on Saturday hiked the price of Aavin ( Tamil Nadu Co-operative Milk Producers' Federation) milk by 10 a litre. The hike, which has come coming after a gap of three years, will be effective from November 1. An Aavin card holder will get a litre of toned milk (blue) at 34, standardized milk (green) at Rs 39, full cream milk (orange) at 43 and double toned milk (magenta) at 33.

Even after the hike, Still, the MRP of Aavin milk these varieties will be remain lesser than those of that of private milk marketing firms producers. Aavin card holders will have to pay the variation in price at the time of renewal of card next month. The hike is expected to fetch Aavin 9.5 crore a year in Chennai alone. Announcing the decision, chief minister O Panneerselvam said the procurement price of cow and buffalo milk had also been raised by 5 and 4 per litre respectively, on account of increase in input cost. As per the revised rate, farmers will be paid 28 a litre for cow's milk and 35 for buffalo's milk. About 75-80% of Aavin's revenue earned out of sale of milk by Aavin goes to milk producers, he said.

Turns from here Farmers have been demanding a hike in procurement price for more than a year, during which time private firms increased both procurement and sale price at least twice. The government increased the procurement price by Rs 3 a litre on January 1, 2014, but farmers were not satisfied. The government's reluctance to increase procurement price further resulted in many farmers supplying milk to private firms. Aavin has been making a loss of Rs 4.77 a litre since January. With the hike in prices, it is expected to make a profit of 23 paise a litre, said sources

When amma can bring in amma canteens why not milk and why are they comparing with private firms here??
 
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