Aavin, the state-run dairy, is reportedly moving to withdraw the monthly subsidy offered to milk card holders in Chennai as it struggles with mounting losses. The subsidy is expected to be stopped after July 13, and officials have allegedly been given confidential instructions to reduce the issuance of milk cards.
In Chennai, Aavin sells more than 14 lakh litres of milk daily, sourcing supplies from other districts and processing them at its Ambattur, Madhavaram and Sholinganallur units. The report lists current retail prices as: orange packet (500 ml) at Rs 30, green at Rs 22, purple at Rs 22 and blue at Rs 20.
Around nine lakh consumers in Chennai reportedly buy milk using monthly milk cards. Under the scheme, subsidies are provided per packet—Rs 7 for the orange packet, Rs 1 each for green and purple, and Rs 1.50 for the blue packet. The report says Aavin is facing losses of up to Rs 100 crore a month, attributing the situation to past irregularities and administrative inefficiency, with the subsidy burden also cited as a contributing factor.
The report adds that Coimbatore district has already announced that milk card subsidies will no longer be provided. It also claims Aavin has reduced supplies of certain variants—retailers allege green packet supply has been cut and orange supply reduced—though Aavin has denied any cut, stating overall sales have risen from 14.46 lakh litres last June to 14.82 lakh litres now and that no specific milk type has been curtailed.
