TNDA hikes milk prices

Chennai, Jan 30 (UNI) The Tamil Nadu Dairies Association (TNDA) today said it decided to increase the price of milk by Rs one to Rs two a litre with effect from February one next, according to Association President A Samiappan and Secretary R Rajasekaran.

Addressing the press here, they said the amount accumulated due to the proposed increase would reach the farmers directly. The price of toned milk will be increase from Rs 15 to Rs 16 a litre.

Based on the quality, they purchased milk at Rs 8.50 to Rs nine a litre while the processing costs came to approximately Rs four a litre. The purchase price of will be increased to Rs 9.50 or Rs ten from February one, they said.

The prices of standardised milk used in hotels will increase from Rs 16 to Rs 17.50 per litre while full cream milk cost will rise from Rs 18 to Rs 20 a litre.

On reason for the price hike, they said in the last four years the prices of fodder and medical expenditure on milch animals had increased to a great extent besides considerable rise in employee costs.

Recent increase in exports in milk powder and other milk products from Tamil Nadu to foreign countries had contributed to the move and added the prices of milk had not been increased for the last 4 years.

To a question, they said 65 lakh litre of milk were procured per day. Around 42 lakh litre were packed and sold as barnaded products.

Thirteen lakh litre of milk were non processed and sold directly.

The balance ten lakh litre were directly consumed by dairy farmers for their own use.

Milk production grew four per cent every year. Now due to increase in purchase price, they expect the farmers to produce more resulting in seven to eight per cent growth in milk production, they claimed.

They said their operations were down South in Tamil Nadu and due to the proposed increase, sales could take a hit between ten to 15 per cent initially.

However, this would pick up as milk was consumed by almost everyone.

Responding to an another question, they said the Tamil Nadu Government should also increase both procurement and selling price of Avin milk immediately helping to boost the state's milk production.

UNI