Private Milk Vendors Raise Prices in Coimbatore
Households buying milk from neighbourhood shops and doorstep sellers in Coimbatore are paying more after private vendors revised their rates. Prices that were about Rs 60 per litre in several areas have risen to Rs 66, while some localities have reported charges as high as Rs 70.
The retail changes followed the government’s decision to increase the incentive for dairy farmers who supply milk through Aavin cooperative societies. The previous government had provided Rs 3 per litre. The latest measure is intended to encourage more producers to use the cooperative network.
Different prices across supply channels
Aavin society unpackaged milk remains listed at Rs 48 per litre. By contrast, private doorstep vendors have reported a revised price of Rs 66 per litre, with some private sellers charging up to Rs 70. The figures cited in the report can vary according to locality and supplier.
Private dairy companies are offering farmers procurement prices ranging from Rs 38 to Rs 48 per litre. Despite the higher incentive available through Aavin societies, many producers continue to sell to private dairies. Those companies provide an alternative channel for marketing milk and compete for farmers’ supplies.
Effect on household spending
A Jayanthi, a consumer, said her doorstep vendor had told her that the price would rise by Rs 6 per litre. She buys one litre a day, taking her estimated monthly spending from about Rs 1,800 to Rs 1,980.
A daily increase of Rs 6 for one litre amounts to approximately Rs 180 over a month. A Rs 10 increase adds about Rs 300 over the same period. Households buying several litres a day would face a larger additional bill. Changes in the price of raw milk may also affect products including curd, paneer, sweets and other dairy foods, depending on how suppliers adjust their margins.
Aavin’s procurement network
Aavin is Tamil Nadu’s state-run dairy cooperative network and obtains milk from farmers through cooperative societies. The incentive increase is aimed at making those societies more attractive to producers and increasing the volume entering the cooperative system for processing and distribution.
The continued use of private buyers means farmers can compare the available procurement rates and select a marketing channel. The reported retail revisions in Coimbatore therefore coincide with changes in farmer incentives, competition between cooperative and private procurement, and differences between the prices charged to consumers through each channel.
