Delayed Incentives Add to Dairy Farmers' Financial Strain in TN

Several dairy farmers in the district are expressing concern over Aavin's delay in disbursing the Rs 3 per litre milk incentive for the last two months. R Jaganathan, a farmer from Coimbatore, highlighted that the state government introduced the incentive in December last year to stabilize Aavin's retail prices. While Aavin typically settles milk procurement payments every ten days, the incentive payments have not been consistent. The June incentive was only released recently, leaving farmers uncertain about the payments for July and August.

Delayed incentives

MG Rajendran, the state general secretary of the Tamil Nadu Milk Producers Welfare Association, explained that farmers spend an average of Rs 63.25 to produce one litre of milk, but Aavin only offers Rs 35 per litre for milk with specific fat and SNF content. With rising cattle feed prices, farmers are struggling to sustain their operations. Although the government introduced the incentive to avoid increasing retail prices, irregular payments have added to the financial burden on farmers.

KA Subramaniam, a member of the Aavin union, noted that the cost of concentrated cattle feed has risen significantly over the past year, further straining milk producers. The secretary of an Aavin milk society in Pollachi, speaking anonymously, mentioned that some financially stable societies have been instructed to provide incentives from their own funds, but this is not feasible for all. A senior Aavin official acknowledged the issue and stated that the concerns have been communicated to the Tamil Nadu Cooperative Milk Producers' Federation (TNCMPF), and funds will be disbursed to farmers once available. Despite efforts, Minister for Milk and Dairy Development T Mano Thangaraj was unavailable for comment.