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Tamil Nadu government will facilitate the purchase of 12,500 milch cows under its medium and mini dairy schemes during 2026–27, following its Budget announcement to distribute another 10,000 milch cows free of cost to the rural population. Together, the 22,500 cows will be linked to village-level primary milk producers' cooperative societies, allowing beneficiaries to access cattle-feed subsidies and other support while supplying milk to Aavin.
The initiative is expected to increase Aavin's daily milk procurement by at least 1.5 lakh litres over the next few years. The move comes as Aavin's average daily milk procurement has fallen to around 31.5 lakh litres, from approximately 35 lakh litres a year ago, with many producers shifting to private dairies offering higher procurement prices. Aavin has also reported declining milk quality over the past six months, with average fat and solids-not-fat (SNF) levels continuing to fall. Of the 12,500 cows planned under the schemes, 2,500 cows will support a new programme to establish 500 medium-scale dairy units, with five milch cows per unit, while the remaining 10,000 cows will be purchased through the existing 5,000 mini dairy units, each comprising two cows.
Under the medium-scale scheme, beneficiaries will initially purchase three cows and maintain them for six months before becoming eligible for financial assistance to purchase two additional cows. Loans will be facilitated through the Dairy Development Department and the Tamil Nadu Backward Classes Economic Development Corporation. The government expects the dedicated milk supply from all 22,500 cows to strengthen Aavin procurement, although officials said the impact may take one to two years to become evident.
Beneficiaries under the medium dairy scheme will receive a 25% capital subsidy on project cost, with institutional credit at concessional interest rates arranged for the balance. Under the mini dairy scheme, beneficiaries establishing two-cow units will receive a 4% interest subsidy. The scheme, launched last year, enabled 1,625 farmers to purchase 3,363 milch cows during 2025–26, although it fell short of its target because of delays in loan disbursement, application approvals and fixation of milch-cow prices.
The department plans to procure Jersey crossbred, Holstein Friesian and other approved breeds, with a government order expected soon. In addition, eligible milk producers living below the poverty line will receive cattle feed at ₹2 per kg, at 3 kg per animal per day for 300 days. The measures represent a significant push to rebuild Aavin's procurement base, strengthen farmer participation and improve milk availability and quality across Tamil Nadu. (The New Indian Express)
Source: Dairynews7x7 8 Aug, 2026 Read full story here
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