Second hike in less than two weeks aims to support dairy farmers facing rising cattle-rearing and feed costs
Tamil Nadu Chief Minister C. Joseph Vijay has announced another increase in the milk procurement price paid to dairy farmers, raising the rate by Rs 3 per litre to Rs 44. The decision marks the second procurement-price hike announced by the state government in less than two weeks and takes the total increase to Rs 6 per litre.
The announcement was made by Chief Minister Vijay through a suo motu statement under Rule 110 in the Tamil Nadu Assembly. The government said the move is intended to provide financial relief to milk producers dealing with higher cattle-rearing expenses, particularly rising prices of fodder, mineral mixtures and other cattle-feed inputs.
Procurement price rises from Rs 41 to Rs 44 per litre
Under the latest decision, farmers supplying milk through Tamil Nadu’s cooperative network will receive Rs 44 per litre, compared with the earlier rate of Rs 41.
The procurement price was previously increased from Rs 38 to Rs 41 per litre on August 19. The additional Rs 3 increase announced Monday means dairy farmers have received a cumulative procurement-price increase of Rs 6 per litre within a period of less than two weeks.
| Particulars | Earlier | Latest |
|---|---|---|
| Previous procurement price | Rs 38/litre | — |
| First increase | Rs 41/litre | August 19 |
| Latest procurement price | Rs 41/litre | Rs 44/litre |
| Total increase | — | Rs 6/litre |
| Beneficiaries | — | 3.16 lakh milk producers |
| Cooperative societies | — | 8,800 |
3.16 lakh milk producers expected to benefit
The latest procurement-price revision is expected to benefit approximately 3.16 lakh milk producers associated with around 8,800 milk cooperative societies across Tamil Nadu.
For dairy farmers, procurement prices are an important component of farm income, particularly when input expenses rise. Increasing costs for cattle feed, fodder and mineral supplements have placed additional pressure on producers, making higher milk procurement prices an important source of financial support.
The government’s decision comes amid concerns among dairy farmers in different parts of the state regarding the adequacy of existing procurement rates. Some milk producers had reportedly demanded higher prices to compensate for increasing cattle maintenance and feeding expenses.
Tamil Nadu government to compensate Aavin
The increased procurement price will also have financial implications for Aavin, Tamil Nadu’s state-run dairy cooperative. The state government has decided to compensate Aavin for the additional expenditure resulting from the latest procurement-price increase.
According to Chief Minister Vijay, the latest hike will create an additional financial burden of approximately Rs 60 crore per month for the state government. On an annual basis, the additional expenditure is estimated at around Rs 720 crore.
The government’s financial support is intended to ensure that Aavin can implement the higher procurement price without placing the entire additional cost burden on the cooperative.
Move follows farmer concerns and electoral commitment
The latest increase comes against the backdrop of growing concerns over rising cattle-rearing costs in Tamil Nadu. Milk producers have sought better procurement prices as expenses related to feed, fodder and livestock maintenance continue to increase.
The decision also fulfils an electoral commitment made by the ruling TVK, whose manifesto had promised to raise Aavin’s milk procurement price to Rs 44 per litre.
The successive price revisions could provide greater income support to dairy farmers while strengthening the state’s cooperative milk procurement network. For Aavin, however, the higher procurement price will require continued government financial assistance to manage the increased cost of sourcing milk.
With the procurement price now reaching Rs 44 per litre, the move represents a significant intervention by the Tamil Nadu government to address farmer concerns and support the state’s dairy sector amid rising production costs.