Chennai: Private dairy companies in Tamil Nadu have increased the retail prices of milk and curd by ₹4 per litre, with the revised rates coming into effect from July 9. The hike, the second this year, comes amid tightening milk supplies, rising procurement costs, and increasing competition for raw milk across southern India.
The Tamil Nadu Milk Agents and Workers Welfare Association expressed concern over the price increase, warning that declining milk production in several states could lead to a prolonged supply crunch in Tamil Nadu. According to the association, lower milk output has been reported not only in Tamil Nadu but also in Andhra Pradesh, Telangana, Karnataka, Kerala, and Puducherry, largely due to adverse weather conditions and inadequate summer rainfall.
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The association said the reduced availability of milk has intensified competition among private dairy companies, prompting them to offer higher procurement prices and additional incentives to dairy farmers in an effort to secure supplies. As a result, many producers are reportedly shifting their milk sales from the state-run Aavin network to private processors offering better returns.
Industry representatives also attributed the latest retail price revision to higher production and distribution costs. Rising international crude oil prices, driven by geopolitical tensions in West Asia, have increased transportation expenses and the cost of packaging and other dairy inputs, placing additional pressure on dairy processors.
Among the companies implementing the revised prices, Arokya Milk has notified distributors and retailers that the new rates are effective from July 9. The revision includes an increase in the prices of toned, standardized, and full cream milk, as well as curd products. The company has also announced higher trade margins for milk agents and retailers.
The association has urged the Tamil Nadu government to introduce a free milch cow distribution scheme to expand milk production, strengthen farmer livelihoods, and improve long-term milk availability in the state.
The development highlights the growing challenges facing India’s dairy sector, where weather-related production fluctuations, rising input costs, and intense procurement competition are increasingly influencing milk prices and supply dynamics.
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