In a move that signals renewed commitment to grassroots dairy development, six previously defunct milk cooperative societies in Tamil Nadu’s Madurai district have been revived with targeted financial assistance totalling ₹36 lakh. The initiative, spearheaded by the District Milk Cooperative Department, aims to empower small-scale dairy farmers and restore milk production in areas where the sector had ground to a halt.
Addressing Core Challenges in Rural Dairy Operations
The six societies, located in Nakkalapatti, M Kilapatti, Samanilaipatti, Anaikaruppatti, Tatchipatti, and S Velapatti, had ceased functioning due to persistent financial challenges and a notable drop in milk procurement. During a recent inspection and review exercise, officials identified two key bottlenecks: a lack of viable herd sizes among member farmers and financial constraints that crippled income-generating activities.
“Since cooperative societies play a vital role in enhancing milk production at the grassroots level, we decided not to shut them down completely”, an official explained. “We identified 10 active members in each society and extended financial assistance in the form of loans of ₹6 lakh per society to help them scale operations.”
The loans aim to help farmers invest in additional milch animals, infrastructure, and inputs required for a consistent milk supply, a necessity for ensuring the viability of cooperative milk collection systems.
Voices from the Ground: Small-Scale Dairy Farmers Speak Out
Madhan, a beneficiary of one of the revived societies, underlined the challenges small-scale dairy farmers routinely face: “Most of us have only one or two cows. While milk provides supplementary income, the entire household becomes vulnerable if one or both animals fall ill. Having a second healthy cow is not a luxury; it’s a buffer against crisis.”
The revived societies, now operational, are expected to gradually reintegrate into the milk procurement system of Aavin, the Tamil Nadu Cooperative Milk Producers’ Federation. Their revival marks a step toward re-strengthening local dairy economies and ensuring sustained farmer participation.
Call for Broader Support and Feed Subsidies
While financial aid has been welcomed, farmer representatives have called for additional government support, particularly to manage input costs. T. Inbaraj, treasurer of the Tamil Nadu Milk Farmers Welfare Association (Madurai), urged the government to consider increasing cattle feed subsidy by ₹ 2/kgs, highlighting the rising cost of feed as a significant concern for smallholders.
“Feed cost remains the single largest expense for small dairy farmers. If input costs aren’t controlled, even financial assistance won’t yield sustainable growth. A feed subsidy revision is essential,” Inbaraj said.
Strengthening the Cooperative Backbone
The dairy cooperative model in Tamil Nadu follows a three-tier system involving village-level milk producers, district unions and the state federation. While the structure is robust, the success of local societies depends on continuous engagement, financial viability, and farmer capacity.
This revival effort comes at a time when smallholder dairying faces multiple pressures from rising input costs and climate-linked cattle health issues to fluctuating milk prices. Rebuilding cooperative societies from the ground up may be one of the most effective strategies to bolster rural income and decentralised milk production in the long term.
Towards a Sustainable Rural Dairy Ecosystem
The revitalisation of these six societies could serve as a blueprint for other regions where cooperatives are inactive. Ensuring timely financial support, targeted subsidies, and access to veterinary care could transform defunct societies into thriving rural dairy hubs — reinforcing the backbone of India’s dairy sector.
