Chennai, July 2020: With price of skimmed milk powder falling by Rs 60-80 after lockdown came into force, milk companies like Aavin, Nandini, Amul and Saras are staring at huge losses. The per kg price that stood at Rs 320 in January has come down to Rs 240-260.
Owing to closure of hotels, tea shops, sweet stalls and other commercial establishments, demand for milk has come down by 60 per cent. As a result, about 40 to 45 per cent of milk procured everyday is converted into skimmed milk powder due to which price fell by 20 to 25 per cent.
In Tamil Nadu alone, over 1.3 crore litres of milk went unsold per day during the first week of April, forcing private companies to reduce procurement price. Among government brands, Aavin’s share of milk powder is relatively less according to the reports published in newindianexpress.com.
The Karnataka State owned Nandini converts 33 lakh litre per day, out of 88 lakh litre of milk procured a day while Aavin converts about 12 lakh litre into powder of the total 40.4 lakh litre procured per day. While admitting all milk companies are staring at huge losses, a senior official from Aavin said, “Milk powder can be stocked for up to 12 months. A dedicated website for selling the products will be launched soon.” In April, Aavin tied up with Zomato and Dunzo to deliver its products.
