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Flooding the market

Of late the private enterprises and their products have been flooding the market. And the consumers are extending their support to such products mainly because of their ready availability that obviates the necessity to go far and wide in search of the product and the consequent waste of time and money. The government enterprises continue to show the same nonchalant attitude and refuse to show nothing but loss in their balance sheets!

Aavin that heralded the ‘white revolution’ at one time and was a pioneer in milk and milk products also is not able to cope with the giant strides taken by private enterprises. It is alleged that the growth of private sector enterprises was possible in the first instance, due to the lukewarm attitude of Aavin towards its customers. There is another view among customers. They say that the private enterprises indirectly encouraged by the government. It is said that the government is encouraging them with a view to lessen the burden that they have to carry otherwise.

The private milk vending companies are gradually gaining control over the market, reducing the share of Aavin to a considerable extent. The consumers say that while they would prefer to buy Aavin milk, its non-availability leaves them with no option but to go for others. People feel that if the procedures are simplified, the market for Aavin will pick up. You have to get the milk-cards in the first instance to get your daily supply of Aavin. The cards are distributed only on three specific days in a month. You have to wait in a long queue to get the cards. If you miss these specific days, then you will have to go without milk for a month. If you get the card, then you will have to walk up and down every day to the booth and back home. Door delivery is arranged only in very few selected areas.

If the middle-classes complain of these difficulties, the poor classes have complaints of a different nature. They don’t afford to buy the half-a-litre sachets supplied by Aavin. They have to wait for a considerable time everyday in queues in the booths to get milk in quantities less than 500 ml. The private milk vendors operate in a very efficient manner. The distribution network has been built up in an excellent manner. Milk sachets are available in almost all shops. You don’t have to pay in advance for a month and get your card and walk to a particular booth only. It is available in any shop close by. Just pay cash and walk away with what you want. More over Arokkiya – sold by a private enterprise – is available in 200-ml sachets. However, since the price is higher as compared to Aavin, this has not gained much ground. If Aavin is able to make these alternate arrangements and ensure the supply of milk in simpler ways, it can rule the market once again.

Another complaint about Aavin is about the way pathogenic bacteria are treated. While pathogenic bacteria are neutralised in Aavin, Arokkiya disinfects it completely from the milk that it supplies. Arokkiya wages its ad war laying stress on this fact. Therefore, people tend to prefer Arokkiya to Aavin. Aavin goes one-down on this count as well. There are so many private brands available in the market. Seva, Ananya, Arokkiya, Komatha, Heritage, Sakthi, Tirumala…an unending list. Out of these, Ananya, Tirumala and Heritage are coming from Andhra Pradesh. It is understood that Heritage belongs to a benami of Chandrababu Naidu, Chief Minister of AP.

Sakthi milk is owned by Pollachi N. Mahalingam, the well-known industrialist. Arokkiya has its plant in Kancheepuram and is distributed all over the state from there, through its wholesale distributors, Muthu Milk. The difference in the cost is not considerable. While Aavin sells at the rate of Rs.6.00 to 6.50, the private milk vending companies sell at the rate of around Rs.7.00 to 7.50. The quality of milk supplied by the private vendors is said to be better and ‘thicker’. Aavin matches this quality in its Rs.7.50 variety. However, the question remains to be answered as to why Aavin could not supply this variety at Rs.6.50.

The competition for Aavin’s other milk products like milk kova is becoming stiffer. Arokkiya is manufacturing milk kova and marketing thus capturing the market to a sizeable extent. Senior officials of Aavin say that the rules and regulations governing the distribution of milk framed by the Government are the main constraint that stand in the way of effectively competing with the private vendors. But the people are not concerned with these arguments. All they want is ready availability of quality milk. As far as the private companies are able to fulfil this requirement, they do not care whether it is government regulations that stand in the way of Aavin or not.

The situation in the suburbs and rural areas is not any the better. People in these areas get milk only in the mornings and evenings through the booths and through door delivery. They are not able to get extra supplies to meet emergency requirements and they have necessarily to depend on private companies at such times. This makes the market move towards the private organisations, by and by. While this is so, the condition of those who rear cattle in a small way in the traditional method and supply regularly is beyond redemption. Many of them have given up this profession, unable to compete with the giants. The co-operative societies do not help them in any manner. The situation is strange. Milk produced within the state is in excess of the requirement and is getting wasted while milk produced in other states is distributed and absorbed by the market.

The ball is in the court of Aavin now. It should live up to the situation and make amends so that the needs of the consumers are satisfied and the market for milk produced locally is retained. This problem will assume gigantic proportions soon unless it is addressed effectively now. Aavin should concentrate its efforts in simplifying the distribution system and in promotional activities.

Saravanan

translated by Hari Krishnan


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