Tamil Nadu Plans to Add 22,500 Milch Cows to Aavin Cooperative Network
The Tamil Nadu government plans to bring 22,500 additional milch cows into the cooperative dairy network as part of an effort to strengthen rural dairy farming, improve farmer incomes and reverse the decline in milk procurement by Aavin.
The initiative combines the proposed free distribution of 10,000 milch cows to rural beneficiaries with plans to facilitate the purchase of another 12,500 cows through medium and mini dairy schemes during 2026-27.
Initiative Aims to Increase Aavin Milk Procurement
The dairy expansion programme is expected to increase Aavin’s daily milk procurement by at least 1.5 lakh litres over the next few years.
Beneficiaries will be linked with village-level primary milk producers’ cooperative societies. This will allow farmers to supply milk to Aavin while gaining access to cattle feed subsidies and other government support.
The programme comes as Aavin’s average daily milk procurement has fallen to around 31.5 lakh litres, compared with approximately 35 lakh litres a year earlier.
Farmers Shifting to Private Dairies
The decline in procurement has been partly attributed to farmers moving towards private dairies that offer more competitive milk procurement prices.
Aavin has also been dealing with a decline in the average fat and solids-not-fat content of the milk it procures, adding to the challenges facing the cooperative network.
12,500 Cows Under Medium and Mini Dairy Schemes
Of the 12,500 cows planned through the dairy schemes, 2,500 cows will be purchased for 500 new medium-scale dairy units, with each unit consisting of five cows.
Another 10,000 cows will be procured under the continuing mini dairy programme covering 5,000 units, with two cows allocated to each unit.
Under the medium dairy scheme, beneficiaries will initially purchase three cows and maintain them for six months before becoming eligible for financial assistance to acquire two additional cows.
Government to Provide Financial Assistance
The government has proposed a 25% capital subsidy on the project cost for beneficiaries under the medium dairy programme.
Concessional institutional credit will be arranged for the remaining amount through the Dairy Development Department and the Tamil Nadu Backward Classes Economic Development Corporation.
Under the mini dairy scheme, beneficiaries purchasing two cows will receive a 4% interest subsidy.
Previous Scheme Supported Thousands of Farmers
During 2025-26, the programme helped 1,625 farmers purchase 3,363 cows.
However, implementation fell short of the target because of delays in loan disbursement, approvals and price fixation.
The government is expected to issue guidelines for procuring approved cattle breeds, including Jersey crossbred and Holstein Friesian cattle.
Subsidised Cattle Feed for Eligible Farmers
Another proposed measure is the supply of subsidised cattle feed to eligible milk producers living below the poverty line.
Under the programme, cattle feed will be provided at ₹2 per kg, with each eligible animal receiving up to 3 kg per day for 300 days.
Strengthening Tamil Nadu’s Cooperative Dairy Network
By expanding the number of milch animals within the cooperative system, the government aims to strengthen rural dairy livelihoods while improving the availability of milk for Aavin.
The addition of 22,500 cows, combined with financial assistance, subsidised feed and access to cooperative procurement channels, could provide additional income opportunities for rural households and help Aavin rebuild its milk procurement base.