Tamil Nadu’s cooperative milk producer Aavin has submitted a proposal to the state government requesting a retail milk price increase of ₹5 per litre.
Rising operational costs and severe financial strain on retail network operators have prompted the cooperative to seek this tariff revision.
Implementation of the proposed hike remains strictly subject to final clearance from the Tamil Nadu government.
Under the suggested pricing structure, Aavin will retain ₹4 per litre to cover escalating expenses.
The remaining ₹1 will directly boost profit margins for retail outlet operators across the state.
Aavin currently procures 35 lakh litres of milk daily, supplying nearly 15 lakh litres to Chennai alone.
Existing half-litre packets cost ₹30 for orange, ₹24 for green and purple, and ₹20 for blue variants.
Retail operators currently earn a minimal commission of 75 paise per half-litre packet.
Franchisees report that this margin fails to cover basic shop rentals, electricity bills, and maintenance costs.
Financial distress has forced several newly opened outlets across multiple districts to shut down prematurely.
Inexpensive Aavin milk has also driven heavy demand from hotels, tea stalls, and sweet shops.
Private brands sell milk at rates exceeding ₹75 per litre in Tamil Nadu markets.
Bulk commercial purchases frequently trigger severe stock shortages for ordinary household consumers.
Recent increases in milk procurement prices provided relief to farmers but strained cooperative finances.
Officials noted that neighbouring Karnataka recently raised milk prices by up to ₹8 per litre.
Existing retail prices will continue until the state government renders its final decision.
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