Tamil Nadu Hikes Milk Procurement Price by Rs 3 to Rs 41 Per Litre

CHENNAI — Chief Minister C Joseph Vijay on Wednesday announced a Rs 3-per-litre hike in the procurement price of milk from producers supplying to cooperative societies across Tamil Nadu, taking the total procurement price from Rs 38 to Rs 41 per litre.

Making the announcement in the legislative assembly under Rule 110, the Chief Minister stated that the state government decided to increase the procurement price by Rs 1 per litre through cooperative societies and raise the state government incentive from Rs 3 to Rs 5 per litre, bringing the overall procurement price to Rs 41 per litre.

The revised rate is set to benefit more than 3.16 lakh milk producers supplying milk to primary milk producers' cooperative societies throughout the state. The state government noted that the policy decision was aimed at recognising the hard work of dairy farmers and helping them address the rising expenses associated with cattle feed and labour.

Under the previous structure, milk containing 4.3% fat and 8.2% other solids was procured at Rs 35 per litre, supported by a state incentive of Rs 3 per litre, resulting in a total procurement price of Rs 38 per litre. That pricing mechanism had been in effect across Tamil Nadu since November 5, 2022.

At present, the state has 8,800 milk cooperative societies that collectively procure approximately 34 lakh litres of milk each day from 3.16 lakh dairy producers. From this network, state milk brand Aavin supplies and sells around 31 lakh litres of milk to consumers on a daily basis.

The government stated that the implementation of the latest procurement price increase will entail an additional expenditure of Rs 30 crore per month, amounting to an annual financial commitment of Rs 360 crore for the state.