Seek ₹6 per litre hike for cow milk and ₹13 per litre increase for buffalo milk as production costs soar
Tamil Nadu dairy farmers have renewed their demand for a substantial increase in Aavin milk procurement prices, warning that rising input costs are making dairy farming increasingly unsustainable. The Tamil Nadu Milk Producers’ Welfare Association has urged the state government to announce a long-pending revision during the upcoming Assembly session to protect farmer livelihoods and strengthen the state’s dairy sector.
At a state executive committee meeting held in Salem, the association passed a resolution seeking an increase in procurement prices from ₹38 to ₹44 per litre for cow milk, representing a 15.8% increase, and from ₹47 to ₹60 per litre for buffalo milk, a significant 27.7% increase.
The association said dairy farmers are facing mounting financial pressure due to escalating costs of cattle feed, fodder, labour, veterinary care and livestock maintenance, while procurement prices paid by Aavin have remained unchanged for years.
“Milk procurement prices have not kept pace with the sharp rise in production costs. Farmers are finding it increasingly difficult to sustain dairy operations under the current pricing structure,” said R. Rajendran, President of the Tamil Nadu Milk Producers’ Welfare Association.
According to the association, neighbouring states have periodically revised milk procurement prices to support dairy producers, whereas Tamil Nadu farmers continue to await a meaningful increase despite repeated representations to successive governments.
Key Demands Raised by Dairy Farmers
- Increase cow milk procurement price from ₹38 to ₹44 per litre
- Increase buffalo milk procurement price from ₹47 to ₹60 per litre
- Introduce subsidised livestock insurance for animals supplying milk to Aavin
- Strengthen Tamil Nadu’s cooperative dairy network
- Address financial challenges faced by primary milk societies
The demand comes at a crucial time for the Indian dairy industry, with farmers across several states grappling with higher feed costs, labour shortages and increasing operational expenses. Industry stakeholders believe a procurement price revision could help improve farmer incomes, encourage milk production and ensure the long-term sustainability of Tamil Nadu’s dairy cooperative system.