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Time of India
12 hours ago
- Business
- Time of India
2 new Aavin dairies to double supply
Chennai: With Gujarat-based Amul slowly firming up its dairy footprint in Tamil Nadu, the state govt-run Aavin has begun ramping up its infrastructure in Chennai after several years. Tired of too many ads? go ad free now Two new dairies — one in Madhavaram with a capacity of 10lakh litres a day and another in Acharapakkam of 1 lakh litre capacity — are set to begin operations by March 2026, effectively doubling Aavin's current milk supply potential in Chennai to 22 lakh litres a day, said A Annadurai in response to a grievance letter from the Tamil Nadu Milk Dealers and Workers Welfare Union. The move comes days after Amul managing director Amit Vyas told reporters here that the brand, already selling curd in Chennai, will "slowly and steadily enter into the milk segment" through its plant in Chittoor. Though Chennai, with a population of more than one crore, is a high-potential dairy market, Aavin's current daily sales in the city hover around just 11 lakh litres. Private dairies, despite commanding higher prices, have a stronger presence. Many brands have increased prices by 2 to 3 thrice in the past year, without prior notice or justification. "Aavin's Green Magic, a standardized variant, is in high demand. But it's restricted to monthly cardholders. At retail outlets, agents push the full cream 'premium' or toned 'nice' packs, which don't suit our morning coffee," said T Sadagopan, a resident-activist from Pattabiram. "Aavin should promote what consumers actually prefer, not what offers them higher margins." Beyond sales, Aavin's response letter also addressed environmental concerns raised by the union. The Ambattur dairy, one of its key units, was flagged for polluting the Korattur lake. Tired of too many ads? go ad free now Aavin said that its sewage treatment plant, earlier operating at 3.3 lakh litre a day capacity, is being upgraded to 7 lakh litres a day, with the new facility expected to go live by the end of 2025. Indian Institute of Technology Madras has certified the treatment unit's current output at 700 KLD, and formal approvals from the pollution control board for capacity expansion are under process. On the procurement front, Aavin released 342.14 crore in procurement incentives since Dec 2023, directly credited to dairy farmers through cooperative unions. Dealers too have been seeking a revision in commission rates, which currently stand at 1.5 a litre for retail sellers and 2 for wholesale. Aavin has said the revision will be considered when milk prices are restructured.
New Indian Express
16-05-2025
- Business
- New Indian Express
Aavin halts issuance of new full-cream milk cards
CHENNAI: Owing to rising subsidy costs, Aavin has suspended issuance of full cream milk (FCM) cards to consumers for monthly purchases. While Aavin officials remained tight-lipped about it, the staff at various milk consumers cooperative societies across the city informed customers that milk cards are available only for the standardised, toned, and Delite varieties. The FCM has also been delisted in milk card applications in Aavin's online portal. It is learnt that FCM, sold at Rs 46 per litre after a subsidy of Rs 14 a litre to milk cardholders, caused a significant financial loss for Aavin, prompting the organisation to halt the issuance of new milk cards. In comparison, other milk cards offer a subsidy of only Rs 2 per litre. In retail sales, the FCM of Aavin is sold at Rs 60 per litre as opposed to Rs 46 per litre to cardholders. The price of private FCM variants ranges from Rs 72 to Rs 76 a litre. Until a few months ago, residents could obtain these cards by submitting their Aadhaar and family ration cards. However, starting from May 1, new FCM cards are no longer being issued for FCM, milk consumers told TNIE. Aavin Managing Director A Annadurai stated that daily procurement stands at 33 lakh litres and that sufficient milk is being supplied to consumers. 'There is no shortage of milk. If milk consumers' cooperative societies have stopped issuing the cards, we will look into the matter,' he said. According to official data, Chennai consumes around 13 lakh litres of Aavin milk daily, with 5.5 to 6 lakh litres distributed through milk cards, benefiting roughly 10 lakh residents. S Varadharajan, a resident of Ayanavaram, shared his experience: 'I always buy FCM as we use it for making curd. After moving to Padi, I didn't renew my card, which got cancelled five years ago. Recently, when I enquired at the Korattur society for an FCM card, I was told it is no longer available. I purchase Arokya and other brands for Rs 74 to Rs 76 now.'
