Dairy farmers across Tamil Nadu are gearing up for a statewide protest on March 18, demanding a higher procurement price for milk and timely payment of incentives. With rising input costs, delayed payments, and competition from private dairies, farmers say their livelihoods are at stake.
Aavin vs. Private Dairies: An Uneven Playing Field
Addressing the media, K. Mohammed Ali, President of the Tamil Nadu Milk Producers Association, pointed out that 15 lakh families depend on dairy farming in the state. However, Aavin, the government-run cooperative, procures only 35 lakh litres daily—a fraction of the state’s total milk production.
A major concern is pricing. The government last increased the procurement price in 2022 by ₹3 per litre, setting the current rates at:
🟠 ₹35 per litre for cow milk
🟠 ₹41 per litre for buffalo milk
In contrast, private dairy companies pay up to ₹40 per litre for cow milk, luring farmers away from Aavin. Farmers argue that Aavin’s lower price and delayed payments make it an unreliable buyer.
“In other states, dairy farmers receive multiple incentives. In Tamil Nadu, we get just ₹3 per litre. Worse, the government has not paid incentives for three months, pushing many farmers to shift to private players,” Mr. Ali explained.
Aavin’s Financial Struggles & the Demand for Compensation
Farmers also point to Aavin’s financial difficulties, alleging that the cooperative suffered a ₹1,000 crore loss over the past four years due to a ₹3 reduction in milk prices. They are demanding that the government compensate Aavin to ensure the sustainability of the state’s dairy sector.
“Aavin is struggling, and so are the farmers. Without better pricing, neither will survive in the long run,” Mr. Ali added.
Statewide Protest: Farmers to Bring Cattle to District Headquarters
In a symbolic demonstration, dairy farmers will bring their cows to district headquarters on March 18, urging the government to take immediate action.
Their key demands include:
✅ Increasing cow milk procurement price from ₹35 to ₹45 per litre
✅ Raising buffalo milk procurement price from ₹41 to ₹51 per litre
✅ Timely disbursement of incentives
✅ Government compensation to offset Aavin’s financial losses
The Bigger Picture: Sustainability of Tamil Nadu’s Dairy Industry
While the government promotes self-sufficiency in dairy production, farmers argue that low procurement prices discourage milk production and drive them towards private companies. If Aavin continues to lose suppliers, Tamil Nadu may become dependent on private dairies, which could lead to higher consumer milk prices in the long run.
With the protest set for March 18, the pressure is now on the Tamil Nadu government to address these grievances before discontent deepens.
Will the government act in time to prevent an exodus of farmers from Aavin?