TN Dairy Farmers Face Losses as Prices Lag Costs
Dairy farmers in Tamil Nadu are incurring significant losses as milk production costs have risen to around ₹61 per litre, while procurement prices remain far lower across channels, according to farmer bodies.
The Tamil Nadu Milk Producers Welfare Association highlighted that nearly 30 lakh farmers are engaged in milk production, with pricing gaps severely impacting their viability.
Farmers supplying to Aavin—around 4.5 lakh producers contributing 35–36 lakh litres daily—receive about ₹36.75 per litre, resulting in a loss of roughly ₹24.25 per litre. Those supplying to private dairies, over 8 lakh farmers, get around ₹45 per litre, still facing losses of about ₹16 per litre. Meanwhile, small and marginal farmers selling to local traders receive nearly ₹28 per litre, translating into losses of approximately ₹32 per litre.
The widening gap between rising input costs and stagnant procurement prices is putting sustained financial pressure on farmers, raising concerns over the long-term sustainability of dairy farming in the state.
Source: Dairynews7x7 31st March, 2026 Read full story here
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