Aavin Producers Demand Rs 200 Crore Dues from Tamil Nadu Govt

Dairy producers associated with the Tamil Nadu Co-operative Milk Producers’ Federation (Aavin) have raised a strong demand for the state government to clear pending **dues worth approximately ₹200 crore, highlighting ongoing financial stress in the cooperative dairy procurement system. The producers’ agitation reflects growing discontent within the dairy farming community over delayed payments and economic viability.

At a protest near Aavin collection centres, dairy farmers and primary producers voiced concerns that payment delays of several weeks to months have strained household finances, particularly amid rising input costs such as fodder, feed and labour. The total outstanding dues owed to producers were estimated to be around ₹200 crore, which farmers say is affecting their ability to sustain regular milk supplies and maintain inventory.

Producers highlighted that the delayed release of Aavin incentives and procurement payments has forced many to resort to borrowing money at high interest rates to meet daily expenses at the farm level. Farmer representatives have appealed to the state government to intervene and release the pending payments immediately, arguing that timely compensation is crucial for sustaining milk production and preventing distress among small and marginal dairy farmers.

The protest comes amid broader challenges facing Aavin’s procurement operations, including competition from private dairies offering higher farmgate prices, logistical constraints due to seasonal heat, and occasional delays in incentive payments from cooperative channels. Producers have signalled that unless the government acts swiftly to clear dues and streamline payment mechanisms, milk collections under the Aavin network could be impacted.

Source : DAirynews7x7 Jan 6th 2026 (newindianexpress.com)