Aavin revises milk price for all categories

Aavin on Saturday introduced new costs after the speed discount introduced by the State authorities on Friday. Half a litre of toned milk (blue packet) will now price ₹20 instead of ₹21.50 and month-to-month card holders must pay ₹18.50.

Standardised milk (inexperienced magic) would now be priced ₹22 (500 ml), full cream milk (orange packs) ₹24 (500 ml) and double toned milk (purple packs) ₹18.50 (500 ml).

For a 30-day cycle, cardholders would pay ₹555 for 500 ml toned milk, ₹630 for 500 ml standardised milk, ₹690 for 500 ml full cream milk and ₹540 for 500 ml of double toned milk. Cardholders who paid prematurely are being advised that the surplus quantity can be adjusted subsequent month.

This discount by ₹3 per litre would result in a further expense of ₹270 crore yearly for the Tamil Nadu Cooperative Milk Producers Federation, whose well-liked model is Aavin.

Tamil Nadu Milk Producers Welfare Association president M.G. Rajendran welcomed the transfer and mentioned that it will get Aavin new shoppers. “The government should subsidise this amount as otherwise the milk cooperative would suffer losses,” he mentioned.

Aavin can tide over the monetary burden by tightening its purse strings and by enhancing its advertising and marketing community, a former official mentioned. “It spends around ₹1 crore a month giving 75 paise a litre to ten C and F agents with a promise that they will increase sales by 3 lakh litres a day. However, this has not happened. The system of supplying milk through the agents, then wholesale and retailers must be changed,” he mentioned.

A distributor mentioned that the current advertising and marketing workforce and system have to be overhauled. “Conversion of milk into milk powder must be reduced. Daily around 4.5 lakh litres are converted and it costs around ₹12 a litre. District unions in Tiruchi, Coimbatore, Kanniyakumari and Tirunelveli do not convert the milk into powder and sell all the milk they procure, which helps them remain profit-making unions,” he mentioned.

Another former official mentioned that focus must be on growing milk gross sales to business institutions and by organising extra shops. “If availability of milk is improved, more consumers would be attracted to Aavin, especially after the reduction in prices. Distributors who sell other brands of milk too want to take up Aavin sales,” he mentioned.

Procurement price

Aavin clarified that procurement costs of milk would stay the identical.

Producers supplying cow’s milk with 4.3% fats and eight.2% solids-non-fat in a litre of cow’s milk can be paid ₹32 per litre and people supplying their respective cooperative societies buffalo’s milk with 7% fats and eight.8% SNF can be paid ₹41 per litre. “These prices have been in effect from August 2019,” mentioned an official.