Tamil Nadu CM Vijay announces ₹3 per litre hike in procurement price of Aavin milk

CM Vijay said that the gesture will entail the state government an additional expenditure of ₹30 crore per month.

Tamil Nadu Chief Minister C Joseph Vijay on Wednesday announced a hike in the procurement price of Aavin milk from ₹38 to ₹41 per litre.

Despite the state facing financial constraints, considering the well-being and livelihood of the milk producers, and in an effort to provide a fair remunerative price for their work, the state government has decided to enhance the milk procurement price, he said.

The milk procured through the primary milk cooperative societies of state-owned Aavin would be increased from ₹38 to ₹41, and it will include a government incentive of ₹3 per litre. The move will benefit over 3.16 lakh milk producers, the chief minister said, making an announcement under Rule 110 in the Assembly.

The gesture will entail the state government an additional expenditure of ₹30 crore per month, Vijay said, flaying the previous DMK regime for not making any effort to hike the procurement price.

"Currently, approximately 3.16 lakh milk producers supply milk to 8,800 dairy cooperative societies in Tamil Nadu. The state procures 34 lakh litres of milk daily, with 31 lakh litres sold to consumers," he explained.

Since November 1, 2022, the procurement price was set at ₹38 per litre, which included a base price of ₹35 and a state incentive of ₹3. The government acknowledged that previous administrations failed to adequately address the rising costs of animal feed and labour, as well as the immense effort put in by dairy farmers who start their work as early as 3 AM, he said.

The enhanced price included an increase of Re 1 through the cooperative society and an increase of ₹2 as the government incentive (thus ₹3 per litre). This initiative will result in an additional monthly expenditure totalling ₹360 crore annually for the state government, the chief minister said.