Aavin hikes prices of milk products

CHENNAI:Faced with rising prices of sugar, ghee and butter, state run dairy co-operativeAavin has increased the prices of all its products for the first time in twoyears. The maximum rise in prices has been effected on its sweet products -- themilk khova (pal khova), gulab jamun and mysorepa. The increase comeson the back of the dairy increasing the procurement price of milk and asubsequent hike in butter and ghee prices. With this increase, the flagshipsweet brand of Aavin, the milk khova, will cost Rs 125 for 500 grams, up from Rs90 earlier. Also, half kg of gulab jamun and mysorepa, which were earlier pricedat Rs 85, has also seen the price increased to Rs 125. However, the price hikeis just marginal for most of the products, with the increase ranging betweenjust about a rupee or two for fast moving consumer products. Theprice increase, especially those of the sweet products, seems to have beentriggered by the surge in sugar prices. Since October, sugar prices have beenrising steadily by about 19% in all the metros, due to delay in thecane-crushing process in Maharashtra and Uttar Pradesh, two of the topsugar-producing states in the country. Sugar price has been hovering around Rs35 since mid-November. Products like lassi, maavin (a mango drink),hot milk, curd and probiotic curd have seen a negligible price rise of one rupeeor two. Officials say the prices are still lower than the products of Amul andother private dairies.The hike was effected as Aavin increased theprocurement price of milk by Rs two per litre of cow milk and Rs five per litrefor buffalo milk since September 1, 2009. The last price hike forAavin products came in July 2007. The increase in the price of all of Aavin'sproducts comes on the back of the co-operative recently increasing the price ofits butter and ghee products. Just about a week back, Aavin increased the priceof its ghee by Rs 40 per litre, while butter price was increased by Rs 15 perhalf kg. Aavin procures 25 lakh litres of milk from milk producers in the stateand the co-operative had increased the procurement price of milk twice in thelast two years. The hike in September was necessitated as milk producers in thestate threatened to go on an indefinite strike.