Tamil Nadu Chief Minister C. Joseph Vijay announced Wednesday that the procurement price for Aavin milk will increase by ₹3 per litre [3].
The decision aims to improve the livelihoods and well-being of dairy farmers across the state [5]. By increasing the payout to producers, the government seeks to stabilize the dairy sector despite existing financial constraints [5].
The procurement price will rise from ₹38 [1] to ₹41 per litre [2]. This adjustment directly impacts the state-run Aavin dairy operations in Chennai and across Tamil Nadu [1, 2].
"This step will benefit around 316,000 milk producers in Tamil Nadu," Vijay said [5].
The price hike carries a significant fiscal burden for the state treasury. According to the Chief Minister, the move will require the state government to spend an additional ₹360 crore annually [4].
Vijay said the procurement price will rise from ₹38 to ₹41 per litre [1]. The government intends for this increase to offset costs for farmers and ensure the sustainability of milk production within the region [5].
“The procurement price will rise from ₹38 to ₹41 per litre.”
This procurement hike represents a strategic effort by the Tamil Nadu government to protect the income of rural producers against inflation and rising operational costs. While the ₹360 crore annual expenditure adds pressure to the state budget, the move prevents potential farmer unrest and ensures a steady supply of milk for the Aavin network, which is critical for food security in the state.
