Losing Rs 1.25 per liter of milk supplied to Aavin-Farmers

By DairyNews7x7•Published on February 05, 2026

A section of milk producers supplying milk to Aavin has demanded an increase of Rs 12 per litre in the procurement price, citing rising costs of cattle feed and mineral mixtures.

The farmers said they spend an average of Rs 50 per litre to produce cow milk and Rs 60 per litre for buffalo milk. However, Aavin’s procurement price stands at Rs 38 per litre for cow milk and Rs 47 for buffalo milk, including a Rs 3 incentive. Aavin procures around 35 to 36 lakh litres of milk every day from nearly 3.5 lakh dairy farmers.

MG Rajendran of Tamil Nadu Milk Producers’ Welfare Association, recently in a petition to Chief Minister MK Stalin and others, said, “While private companies offer Rs 42 to Rs 45 per litre for cow milk with 4.3% fat and 8.2% SNF, Aavin pays only Rs 36.75 per litre. Farmers incur a loss of Rs 1.25 per litre. In total, suppliers across the state who sell about 35 to 36 lakh litres of milk to Aavin suffer a loss of nearly Rs 43 lakh every day.”

He urged the government to conduct a detailed study to assess the actual cost of producing one litre of milk and fix procurement prices accordingly. “The government provides compensation to transport corporations and Tangedco, but no such support is given to Aavin. We want the government to provide Rs 1,000 crore as compensation to the Dairy Development Department. Only then can milk be sold without raising prices while ensuring better procurement rates for farmers,” he said.

Aavin last increased the prices of standardised (green) and toned (blue) milk by Rs 6 per litre in August 2019. However, in May 2021, after assuming office, the DMK government reduced the price by Rs 3 per litre. Since then, standardised milk has been sold at Rs 44 per litre and toned milk at Rs 40 per litre. Meanwhile, in November 2022, the retail price of full cream milk was raised from Rs 48 to Rs 60 per litre though milk cardholders continue to purchase it at Rs 46 per litre. In December 2023, the government introduced a Rs 3 per litre incentive for milk supplied to Aavin.

Source : DAirynews7x7 Feb 5th 2026 The New Indian Express