Tamil Nadu Dairy Farmers Seek Higher Aavin Prices

Dairy farmers in Tamil Nadu have urged the state government to increase Aavin milk procurement prices, arguing that rising cattle feed, labour and production costs are making dairy farming financially unsustainable. Farmer associations have demanded that any future increase in Aavin retail milk prices should be directly passed on to milk producers to protect rural livelihoods and prevent further migration toward private dairy buyers.

According to farmer representatives, Aavin currently procures around 35 to 36 lakh litres of milk daily from nearly 3.5 lakh dairy farmers across Tamil Nadu. Producers claim that the present procurement price does not adequately cover production expenses, with some associations estimating that farmers are losing nearly ₹1.25 per litre supplied to Aavin.

Farmer groups stated that producing one litre of cow milk now costs nearly ₹50, while buffalo milk production costs can reach around ₹60 per litre due to rising fodder, mineral mixture and maintenance expenses. However, Aavin’s procurement price currently stands at approximately ₹38 per litre for cow milk and ₹47 per litre for buffalo milk, including the ₹3 incentive introduced by the Tamil Nadu government in December 2023.

Milk producers have demanded a substantial revision in procurement prices, with some associations seeking an increase of up to ₹12 per litre. They also argued that private dairy companies are offering ₹42–45 per litre for cow milk, encouraging many farmers to shift away from cooperative procurement systems. Farmer leaders warned that delays in incentive payments and inadequate procurement pricing are weakening Tamil Nadu’s cooperative dairy structure.

The demands come at a time when milk prices are rising across India. Major dairy brands including Amul and Mother Dairy recently increased milk prices by ₹2 per litre due to higher procurement, fuel, packaging and operational costs. Similar milk price revisions have also been announced by several regional dairy cooperatives in recent weeks.

Farmer associations have urged the Tamil Nadu government to conduct a scientific study on actual milk production costs and revise procurement prices accordingly. They also requested financial support for Aavin similar to subsidies provided to state transport and power utilities, arguing that stronger support is necessary to sustain dairy farming, protect milk supply chains and ensure long-term stability in Tamil Nadu’s dairy sector. (The New Indian Express)

Source: Dairynews7x7 17 May, 2026 Read full story here

#Aavin #DairyFarmers #MilkProcurement #DairyIndustry #TamilNadu #MilkPrices #Dairynews7x7