Salem protest highlights crisis in milk production economics; a warning has been issued to halt supply from October 22
SALEM, TAMIL NADU – Tensions are rising in the Tamil Nadu dairy sector as hundreds of dairy farmers staged a protest outside the Salem District Union of Aavin, the state-run milk cooperative, demanding a ₹15 per litre increase in milk procurement prices. The demonstration, spearheaded by the Tamil Nadu Farmers Association, highlights the growing economic strain on small and medium dairy farmers in the region.
Currently, the state government pays ₹38 per litre for cow milk and ₹48 per litre for buffalo milk, rates that farmers say no longer cover the skyrocketing cost of production.
“Feed costs have almost doubled. What used to cost ₹700 per sack is now ₹1,200. Cotton seed cake has shot up from ₹28/kg to ₹47/kg. On top of that, labour costs are climbing. We simply cannot sustain ourselves at the current procurement rates,” said R. Velusamy, President of the Tamil Nadu Farmers Association.
Protesters Warn of Supply Halt from October 22
Leaders of the protest, including K. Raja Perumal (State Vice President) and N. Sivaperumaan (State Deputy General Secretary), issued a stern warning: if the government does not announce a price hike by October 22, farmers will stop supplying milk to cooperative societies such as Aavin, potentially disrupting the regional dairy supply chain.
“We’re not asking for charity—just fair compensation,” said one protesting farmer. “Without immediate government action, the future of dairy farming in Tamil Nadu is at serious risk.”
Soaring Input Costs Fuel Discontent
Farmers are particularly affected by the surging prices of essential dairy inputs such as:
- Dry and green fodder
- Paddy straw
- Cottonseed cake
- Labor wages
This cost inflation has eroded already-thin profit margins, making milk production financially unviable under the current procurement rates.
Sector Implications for Tamil Nadu and Beyond
The protest brings renewed attention to dairy procurement policy in India, especially in key milk-producing states like Tamil Nadu. With similar price pressures emerging in other states, the Salem protest could catalyse wider agitation if policymakers do not respond proactively.
This development also intersects with broader concerns about milk price hikes in India, dairy inflation, and milk supply shortages, issues that directly impact both rural livelihoods and consumer prices.
