Aavin milk price hike in Tamil Nadu: Burning a hole in the monthly budget

The Aavin price hike came into effect this morning with the Chief Minister of Tamil Nadu, Edappadi K Palaniswami justifying the hike. He clarified the hike in Aavin milk prices and expressed confidence that it would not affect the people. “The hike that came into effect this morning is sure to burn a big hole in our pockets”, say many across the state.

On Saturday, the State Government announced a rise in milk prices. Holding that milk production plays a vital role in boosting the economy in rural areas, the Government said that milk procurement prices have been increased by Rs 4 and Rs 6, for cow and buffalo milk respectively. As per the revised structure, prices of all variants of milk will be increased by Rs 6 per
litre.

Meanwhile addressing reporters at Salem airport on Sunday, the Chief Minister, said, “Following demands from 4.6 lakh milk producers, we have hiked milk procurement prices. Hence the prices per litre were increased for consumers. I already discussed the issue in the State Assembly. With the fodder cost, processing charges, transportation and logistics cost increasing, the price hike of milk is inevitable”.

Speaking to us, Kanakambari, a housewife in Tambaram, says, “A sudden decision to increase milk price was shocking. We have to shell out extra money. It is a steep hike in our monthly budget considering the consumption of milk. However they try to justify it, it is unacceptable. Now the private milk producers too will increase prices.”

Anantaraman, a sales representative, says, “Sadly, the tea shops too raised the price of tea per cup. They were charging Rs 10 per cup, it is now increased to Rs 12”.

Echoing the same, a tea shop owner Marimuthu, says, “It is difficult to run the business. Sugar costs have gone up and so have the commercial LPGs being used. Now the milk price is up. We have no option but to increase the price of tea”.

As per the latest price hike, the brown colour packet of milk will cost Rs 40 per litre, blue packets at Rs 43, green, Rs 47 and orange at Rs 51. But it seems that neither the milk producers are happy. Though they thank the government for the gesture, still they believe the procurement price hike is not sufficient.

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