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Tamil Nadu’s Minister for Milk and Dairy Development, Mano Thangaraj, confirmed that the DMK administration previously raised cooperative milk procurement prices by ₹3 per litre. In addition, farmers currently earn quality‑based incentives of ₹3/litre, plus ₹1/litre extra for premium quality milk. The government is now considering another procurement price hike—subject to approval by the Chief Minister’s office.
Approximately 36 lakh litres of cow and buffalo milk are procured daily across the state through 472 dairy cooperative societies, of which 72 have been empowered to produce and market dairy products worth ₹98 lakh last year. Despite 56 societies running at a deficit, the department has provided ₹88 crore in interest‑free loans in Erode district alone, with a further ₹10 crore pledged via commercial banks.
Thangaraj also detailed efforts to overhaul Aavin’s marketing infrastructure: expanding sales teams, strengthening procurement logistics, and boosting Aavin’s overall presence. These steps aim to make cooperative pricing more attractive to farmers and reduce reliance on private procurement channels.
Industry Insight:
This measured price adjustment, coupled with quality‑based incentives and stronger cooperative marketing, could bolster farmer loyalty to Aavin, stabilise procurement volumes, and insulate the sector from private buyer volatility.
Source : DAirynews7x7 Aug 4th 2025
