TN Dairy Industry Seeks Milk Price Regulation

Tamil Nadu's dairy industry has appealed to the State Government to introduce a regulated minimum procurement price and maximum retail price for milk, arguing that the absence of a structured pricing mechanism is creating instability across the dairy value chain. Industry representatives said unregulated pricing has intensified competition among private dairies, leading to price undercutting in some cases while rising production costs continue to squeeze both dairy processors and milk producers.

They stressed that escalating expenses on cattle feed, fodder, labour, transportation, electricity and other inputs have significantly increased the cost of milk production, making a scientifically determined pricing framework essential for the long-term sustainability of the sector. According to the industry, fixing a minimum procurement price would ensure fair and stable returns for dairy farmers, while a maximum retail price would protect consumers from excessive price fluctuations and promote greater transparency in the market.

Stakeholders believe such a policy would create a balanced ecosystem by safeguarding farmer incomes, ensuring affordable milk for consumers and encouraging healthy competition among dairy companies, ultimately strengthening Tamil Nadu's dairy industry. (X (formerly Twitter))

Source: Dairynews7x7 29 July, 2026 Read full story here

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