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High-level administration recommends price increase of Aavin Milk by Rs. 6/- per litre
Posted on: 24/Jun/2014 3:08:55 PM
The high-level government administration has recommended to increase the price of Aavin milk by Rs. 6/- per litre.
Aavin milk is cheaper as compared to the other private milk vendors and is also of good quality.
Aavin sells 11.5 Lakh litres of milk daily. 7 lakh litres are for milk card holders and 4.5 Lakh litres are through wholesale buyers.
Private milk vendors have increased their prices 4 time in the last few months. At the same time, even though Aavin raised its buying price, it has not changed the selling price. This has led to huge losses.
Aavin senior administrators have recommended raising the price by Rs. 6/- per litre and also increasing the purchase price of cow & buffalo milk by Rs. 1/- per litre. A senior official explained that Aavin sells milk cheaper by more than Rs. 11/- as compared to other private milk vendors. This has led to huge losses of up to Rs. 2.25 Crores per month.
In order to compensate for this loss and the rise in purchase price, the recommendation has been made to increase the price of Aavin milk by Rs. 6/- per litre.
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