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        The Tamilnadu government is toying with the idea of increasing the procurement price of milk if the series of deliberations at the Department- level are any indication. The high- level talks follow the repeated representations of the dairy farmers to the government seeking a hike in price for their produce.

        However, sources said, Aavin consumers wouldn't be affected by the impact of procurement price hike as the Tamilnadu Cooperative Milk Producers Federation (Aavin), braving the onslaught of private players, takes a lead in this segment.

        Of the 40 private brands, hardly only 10 are regular in the market and enjoy a meagre customer base. Sources said those private players were finding it difficult to cope up with the stringent quality standards and cheaper price of Aavin.

        It is interesting to note that Aavin braced up for facing the stiff competition from private players and had made rapid strides by ensuring quality, prompt supply and venturing into diversified milk products. Under B K Prasad, managing director of Tamilnadu Cooperative Milk Producers Federation (Aavin) company got a corporate-look with the opening of hi-tech Aavin parlours selling milk and milk products.

        According to sources, Aavin continues to make rapid strides with the productivity to increase from 7 to 8 per cent in the coming years. Aavin which procured 18 lakh litres per day in 2002 has increased its procurement considerably now to 25 lakh litres. Significantly, dairy farmers prefer Aavin to sell their produce since it pays Rs 10 per litre for cow's milk and Rs 12 for buffalo's milk. Aavin total sales is roughly 20 lakh liters per day inclusive of societies and districts sale.

        As far as consumers are concerned, Aavin is the choice of many since it is sold at a retail price of Rs 7 (blue sachet) while monthly card-holders get it for Rs 6.25 per litre.

        Dairy Development Minister U Mathivanan held a meeting with top officials of Aavin yesterday at the Secretariat to chalk out plans and proposals for taking Aavin to great heights.