Milk Producers Call Rs 3 Hike in Aavin Procurement Price Inadequate

Milk producers have expressed dissatisfaction with the recent hike in the milk procurement price announced by Tamil Nadu Chief Minister C Joseph Vijay on Wednesday, stating that the revision fails to meet their actual production expenses.

The state government raised the procurement price from Rs 38 per litre to Rs 41 per litre, marking an increase of Rs 3. However, dairy farmers and association members pointed out that they had been consistently demanding an increase of Rs 7 per litre to keep pace with rising input costs.

M.G. Rajendran, general secretary of the Tamil Nadu Milk Producers Welfare Association, stated in Salem that the revised rate remains inadequate for dairy farmers across the state. He noted that the cost of cattle feed has escalated significantly, alongside sharp increases in the prices of various other essential inputs required for daily milk production.

Rajendran also highlighted a widening pricing disparity between the state-run dairy cooperative and the open market. According to the association, the procurement price offered by Aavin is lower by Rs 12 per litre compared to the rates offered by private milk companies operating in the region.

This price gap has led to a shift in supply, with approximately 15,000 to 20,000 litres of milk per day that would normally be supplied to Aavin being diverted to private companies instead.

The association warned that the cooperative's overall intake has already seen a major decline. Daily procurement by Aavin has dropped from 33 lakh litres per day to 27.5 lakh litres per day. Rajendran cautioned that without more competitive pricing for milk producers, Aavin's daily procurement numbers could decline even further in the coming days.