"The Tamil Nadu government should also provide a subsidy to Aavin. The recommendation by Aavin to increase the milk price should not be accepted,” said PMK leader Anbumani Ramadoss in a statement.
Furthermore, he said, "The reports appearing in the media that Aavin has requested the Tamil Nadu government to allow an increase in the price of Aavin milk by Rs. 5 per litre on 02.11.2026 are shocking. The suggestion that the price should be increased without exploring other ways, in order to reduce Aavin's losses and make it run profitably, is against the welfare of the poor. Recently in Tamil Nadu, the procurement price of milk purchased through Aavin was increased by Rs. 6 per litre.

Reports say that, as Aavin is already suffering heavy losses, the increase in procurement price will further widen those losses, and that Aavin has sent a recommendation to the Tamil Nadu government that the Aavin milk selling price should be raised by Rs. 5 per litre to cope with the situation. If the Tamil Nadu government accepts this recommendation, it is said that Aavin milk prices will be increased in the next few days. It is true that Aavin suffered a loss of Rs. 89.80 crore in the 2025–26 financial year, and that the increase in milk procurement price will multiply Aavin’s losses many times over. However, a price hike is not the only solution to all losses. In particular, Aavin’s operations should be judged by the standard of service to the poor, not weighed on the scale of profit motive.
In Tamil Nadu, private company milk prices are up to 68% higher than Aavin milk. While Aavin’s blue packet milk with 3% fat is sold at Rs. 40 per liter, private companies sell it for Rs. 24 more. Similarly, while green packet milk is sold at Rs. 44 at Aavin, private milk is sold for Rs. 74, which is Rs. 30 more. The price of Aavin’s orange packet milk with 6% fat is only Rs. 60 per liter. But the same milk is sold by private companies for Rs. 84. Compared with private companies, Aavin milk is much cheaper, making it a great boon for poor and middle-class people. If the price of Aavin milk is increased by Rs. 5 per liter, that would be a maximum increase of 12.50%.
Ordinary people cannot bear that. Especially at a time when the prices of all goods, including rice, lentils, and oil, have risen sharply, if the price of Aavin milk is also increased, it will severely affect the people. At the same time, if Aavin continues to operate at a loss, won’t it end up shutting down? That question may also arise.
Even though milk is supplied to the public at affordable prices, the Aavin organization can be ensured to operate profitably in two ways. Last year, Aavin’s state unit incurred a loss of Rs. 120 crore. At the same time, among the total 27 district units, 7 units suffered a loss of Rs. 23 crore, while the remaining 20 district units earned a profit of Rs. 53.20 crore. As with all public sector enterprises, corruption and managerial inefficiency are rampant in Aavin’s administration as well. By correcting them, all district units can be made profitable; the state unit’s losses can also be greatly reduced.

Providing milk at a low price cannot completely eliminate the state unit’s losses. At the same time, Aavin can be run profitably if the government itself bears the losses incurred in milk sales. To offset the losses incurred by the electricity board due to the provision of free electricity in Tamil Nadu for agricultural connections in full and for households from 100 units up to 200 units, the Tamil Nadu government provided a subsidy of Rs. 33,478 crore last year alone. Similarly, transport corporations are given an average annual subsidy of Rs. 17,000 crore. Since the Vidiyal Payanam scheme has been implemented, this subsidy could increase even further this year. These subsidies are provided on the basis that electricity and transport are basic necessities for the people. Compared with these, milk is an even more important basic necessity many times over. Taking that into account, the Tamil Nadu government should also provide a subsidy to Aavin. The Aavin corporation’s recommendation to raise milk prices should not be accepted,” he has insisted.
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