Tamil Nadu Chief Minister C. Joseph Vijay on Monday announced a further Rs 3 per litre increase in the milk procurement price paid to dairy farmers, taking the rate from Rs 41 to Rs 44 per litre. The decision marks the second procurement-price hike announced by the state government in less than two weeks, taking the cumulative increase to Rs 6 per litre.
Making a suo motu statement under Rule 110 in the Tamil Nadu Assembly, CM Vijay said the latest increase was aimed at providing relief to milk producers facing higher input costs, particularly rising prices of fodder, mineral mixtures and other cattle-feed inputs. The decision is expected to benefit 3.16 lakh milk producers associated with 8,800 milk cooperative societies across the state.
The procurement price had earlier been increased from Rs 38 to Rs 41 per litre on August 19. With Monday's additional Rs 3 increase, dairy farmers supplying milk through the state's cooperative network will now receive Rs 44 per litre.
Government to Compensate Aavin
The state government will compensate Aavin, Tamil Nadu's state-run dairy cooperative, for the additional procurement expenditure arising from the latest hike.
According to the Chief Minister, the decision will impose an additional financial burden of approximately Rs 60 crore per month, amounting to Rs 720 crore annually, on the state government.
The latest decision follows growing concerns among dairy farmers over rising cattle-rearing costs. Milk producers in parts of Tamil Nadu had recently demanded a substantial increase in procurement prices, arguing that existing rates were insufficient to cover escalating feed and maintenance expenses. Reports from the state also indicated protests by some producers over procurement rates.
The move also fulfils an electoral promise of the ruling TVK, which had assured in its manifesto that Aavin's milk procurement price would be increased to Rs 44 per litre.