Tamil Nadu raises milk procurement price to ₹41 per litre; CM cites farmers' welfare
Tamil Nadu Chief Minister C. Joseph Vijay announced on Wednesday that the state government has increased the procurement price of milk from ₹38 to ₹41 per litre. The announcement was made through a suo motu statement in the Assembly, a procedure by which a minister voluntarily provides information on a significant matter.
The revised price structure includes an increase of ₹1 per litre from primary milk cooperative societies, while the state government's incentive has been raised from ₹3 to ₹5 per litre. This brings the total procurement price to ₹41, marking a ₹3 increase for dairy farmers.
The Chief Minister said the state has 8,800 milk cooperative societies, which procure approximately 34 lakh litres of milk daily from 3.16 lakh producers. Aavin, the state's cooperative milk marketing federation, sells about 31 lakh litres of milk every day. The earlier procurement rate for milk with 4.3% fat and 8.2% solids-not-fat was ₹35 paid by societies, plus a ₹3 government incentive, making the total ₹38.
In his statement, Mr. Vijay highlighted the cultural and scientific importance of cows. He cited a scientific claim that a cow purifies 500 litres of blood to produce one litre of milk, emphasising the animal's contribution to human welfare. He also expressed surprise that previous governments had not adequately considered the hard work of milk producers, who he said handle cattle, arrange fodder and maintain cleanliness.
The Chief Minister acknowledged that the state government is facing financial constraints, but stressed that the decision was taken in the interest of the welfare and livelihood of milk producers. The additional financial burden on the government is estimated at ₹30 crore per month, or ₹360 crore annually.
The increase is expected to benefit over 3.16 lakh registered milk producers across Tamil Nadu. Dairy farmers have faced rising costs of cattle feed, labour and veterinary care, and the revised procurement price offers a partial offset to these expenses.
The cooperative societies' agreement to raise their contribution by ₹1 per litre reflects a collaborative approach between the state government and the cooperative network. Aavin, with its established processing and distribution infrastructure, is expected to play a crucial role in maintaining the supply chain despite the higher procurement outlay.
Tamil Nadu is among the leading dairy-producing states in India, and Aavin is one of the largest cooperative milk organisations in the country. The procurement price directly affects the incomes of thousands of small and marginal farmers who depend on dairy as a stable source of earnings. This move comes as the state government focuses on rural welfare measures, though the exact impact on retail milk prices has not been specified.
