PMK condemns indirect price hike of Aavin milk

CHENNAI: Pointing out the indirect price increase of Aavin's standardised milk will affect the consumers and help the private milk producers, PMK president Anbumani Ramadoss warned the government that Aavin will go towards closure.

In a statement, Anbumani said that Aavin has decided to stop the sale of standardised milk available in green pouches and replace it with Aavin Delite from November 25. Standardised milk has a fat content of 4.5 per cent while Delite has only 3.5 per cent fat.

"The decision, which would affect the poor and middle class people, is condemnable. The claim of Aavin that says the move is to provide nutrient rich milk is unacceptable. If the Aavin wants to sell nutrient rich milk, the new variety should be sold along with the already existing varieties," he opined.

He added that the Aavin has decided to stop standardised milk in green pouches as it has to spend Rs. 840 Crore to procure butter to mix with the milk to increase fat content to 4.5 per cent. "However, fixing the same price of 4.5 per cent milk to the 3.5 per cent milk amounts to indirect increase of prices. There are chances for customers diverting towards private milk," he said.

Raising suspicion that Aavin is trying to benefit private firms, Anbumani noted that the state-owned Aavin is facing severe maladministration. "Even though sale has increased upto 10 lakh litres, procurement has come down by 10 lakh litres. If this continues, Aavin will face shutdown in future. Aavin should increase the procurement prices to increase the market share of Aavin to 50 per cent," he urged.