Slash in milk rate by private players
Posted on: 17/Jul/2015 6:50:15 PM
There was a severe price war among private milk producing companies when there were three companies who slashed the rates by Rs 2 per litre.
As Aavin is deep into expanding its market in Chennai by increasing its procurement, other players are fast competing to retain their market share in Chennai and other cities as well.
Out of the three companies that reduced milk price on Thursday, two are Andhra based and one based in Tamil Nadu.
Last year, it was these private players who surged price of milk first. It was priced Rs 52 per litre for full cream milk as charged by prive producers. Similarly, rates of other varieties of milk were of the range Rs 48 per litre. In few months down the line, the procurement of Aavin milk raised and the distribution increased too.
Targeting the small family segments, quarter-litre sachets were introduced into the market by the state. This has shaken up the private producers and urged them to retain their market place, mainly in Chennai.
Dodla, Tirumala and Ananya were the three players who on Thursday slashed rates of standardized milk by Rs 2 each. This reduction was possible as the procurement as lowered from Rs 28 to 22 each litre.
There is a demand of 1.25 crore litre of milk in the state. Out of this humongous amount, Aavin meets about 30 lakh litres and the remaining are met by private producers, small dairy farmers, and other government dairies in nearby states, says S.A. Ponnusamy, the founder and president of Tamil Milk Agency Welfare Association.
Arogya, a private producer functions at Chennai up to Kanyakumar. There are consumers who prefer private brands as they have got longer shelf life even without refrigeration.
