Milk prices go up in coastal Andhra

Milk has become costlier in north coastal Andhra Pradesh. Except Vijaya Dairy, all other dairies including Visakha dairy have increased the price by Rs 2 per litre with effect from August 1.

A few Hyderabad-based diaries and others in various parts of the state had already increased their milk selling price a few weeks ago. Around 4.5 lakh litres of milk is sold every day in this part of the state.

Visakha Diary, the largest cooperative dairy in the state, sells up to 3.5 lakh litre of milk a day while other dairies like Dolphin, Heritage, Vijaya, Supraja, Steel City Milk, Revathi and Kamadhenu dairy sell about 1 lakh litres of milk per day.

The double toned milk with 1.5 per cent fat will now cost Rs 18 a litre while pasteurised milk with 3 per cent fat will be priced at Rs 20, and whole milk with 6 per cent fat Rs 24.

"We have increased the procurement price by Rs 2 a litre, which is why all dairies have increased their selling price accordingly," D Venkata Rao, MD, Visakha Dairy, said.

Milk production has been declining gradually for the past two years in coastal districts because of several reasons. Two years ago, the collection of Visakha Dairy was around 5 lakh litre every day, but now this has come down to 3.5 lakh litre a day.

"Increasing the procurement price by Rs 2 per litre is the only alternative to normalise production costs," Rao added.