Disappointed over Tamil Nadu’s recent ₹3-per-litre increase in milk procurement prices, dairy farmers supplying Aavin have threatened to stop milk procurement from August 24, raising fresh concerns over the cooperative’s already declining milk collection. The State government recently increased the effective procurement price from ₹38 to ₹41 per litre, comprising a ₹1 increase in the cooperative procurement component and a rise in the government incentive from ₹3 to ₹5 per litre for milk meeting the prescribed 4.3% fat and 8.2% SNF standards.
However, farmers’ associations have described the increase as inadequate and are demanding a much larger revision, with reports indicating a demand for an overall ₹20-per-litre increase—₹10 in procurement price and ₹10 in incentive. Farmers have also pointed to the higher prices offered by private dairy companies as a key reason for their dissatisfaction, with private dairies reportedly offering up to ₹45 per litre.
The protest threat comes at a sensitive time for Aavin, which is already facing declining milk procurement amid increasing competition for farmers’ milk supplies. Tamil Nadu has around 8,800 milk cooperative societies, procuring approximately 34 lakh litres of milk daily from 3.16 lakh producers, while Aavin sells around 31 lakh litres a day to consumers and uses the remaining milk for dairy products.
The latest dispute highlights the continuing challenge for Tamil Nadu’s cooperative dairy sector: maintaining an adequate farmer base and competitive procurement prices while managing government expenditure and ensuring stable milk availability for consumers. (WeRIndia)
Source: Dairynews7x7 21 Aug, 2026 Read full story here
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