Tamil Nadu Farmers Demand ₹15/L Raise Amid Rising Milk Costs
Dairy farmers under the banner of the Tamil Nadu Farmers Association staged a protest at Salem’s Aavin union demanding that the government raise the milk procurement price by Rs 15 per litre. Farmers say the current rates—Rs 38 per litre for cow milk and Rs 48 per litre for buffalo milk—are no longer sustainable in light of surging input costs.
They pointed out major cost escalations: feed prices have nearly doubled, dry fodder, green fodder, paddy straw, and cotton seed cake costs have all shot up significantly. For example, cotton seed cake which earlier cost about Rs 28/kg now costs nearly Rs 47/kg; feed sacks that used to be Rs 700 are close to Rs 1,200. Labour and other expenses have also risen.
The farmers have warned that if their demand is not met by October 22, they will stop supplying milk to cooperative societies. Their plea is for the procurement price to be hiked by Rs 15 per litre for both cow and buffalo milk to protect against losses and enable a fair income.
Leadership of the protest included R. Velusamy (Association President), K. Raja Perumal (State Vice-President), and N. Sivaperumaan (Deputy General Secretary). The protest was specifically at the Salem union of the Tamil Nadu Co-operative Milk Producers Federation (Aavin), where farmers asserted that milk collected by coop societies in their area is sent on to the Salem Aavin.
Industry Insights
This protest underscores how volatile input costs can strain small and marginal dairy farmers, who often operate with very thin margins. When feed, fodder, and labour costs rise sharply, procurement prices which remain static do not cover production costs — eroding profitability and threatening supply reliability.
The threat to stop supplying milk signals high pressure on cooperatives and might lead to supply disruptions, especially if governments delay addressing these demands. If cooperatives like Aavin are seen as unsympathetic or slow to respond, they risk losing farmer loyalty, potentially pushing farmers towards private players or informal markets.
Additionally, setting procurement prices that minimally keep pace with input inflation is crucial not just for farmers’ income but also for maintaining food security and consumer confidence. If procurement costs are too low, farmers may reduce production, shift to other livelihoods, or compromise on quality — all of which have downstream effects for the dairy supply chain.
Source : Dairynews7x7 Sep 24th 2025