Chennai, Feb 26 (AHN) Private milk companies across Tamil Nadu have increased retail milk prices by Rs 2 per litre, citing a decline in milk production and rising procurement costs from farmers.

The price revision, which has already come into effect for leading brands, is expected to impact household budgets as well as small businesses dependent on dairy products.

Arokya was among the first to implement the revised rates on February 21, increasing prices for both milk and curd. Soon after, other major private players such as Dodla and Jersey followed suit. With the hike, the price of full-cream milk has risen from Rs 76 to Rs 78 per litre, while "special tea" milk now costs Rs 70, up from Rs 68.

Standardised milk has increased from Rs 66 to Rs 68 per litre, toned milk from Rs 60 to Rs 62, and double-toned milk from Rs 48 to Rs 50.

Curd prices have also been revised.

A one-kilogram pack of curd now costs Rs 76, compared to the earlier Rs 74, while the 450-gram pack has gone up from Rs 38 to Rs 40. Double-toned curd has been raised from Rs 70 to Rs 72 per kilogram.

The price hike by private dairies has led many consumers to shift to Aavin, the state-run dairy cooperative brand, which continues to sell milk at significantly lower rates.

Currently, Aavin milk is priced around Rs 18 less per litre compared to private brands, with a difference of about Rs 10 per half litre.

The sharp price gap has triggered a surge in demand for Aavin products, resulting in stock shortages at several retail outlets, where supplies reportedly sell out soon after arrival.

Industry sources attribute the increase to reduced milk production in the state, forcing private dairies to procure milk from farmers at higher prices.

Tamil Nadu Milk Agents Workers Welfare Association President Ponnusamy said that private companies revised retail prices after raising procurement rates paid to dairy farmers. He also alleged that Aavin had not taken sufficient steps to boost milk production, warning that output had already declined even before the onset of summer and could worsen in the coming months. Additionally, he urged private firms to increase the commission paid to milk agents in view of the revised retail prices.