Tamil Nadu CM Vijay announces further hike of milk procurement price to ₹44 per litre

Tamil Nadu Chief Minister C. Joseph Vijay announced on Monday a further increase in the milk procurement price, raising it to ₹44 per litre for primary milk producers’ cooperative societies in the state. The decision follows a recent hike in August, where the government and cooperative societies had already increased the price from ₹38 to ₹41 per litre. The move aims to address rising input costs and fodder prices, with the government committing to compensate Aavin, Tamil Nadu’s state-run milk producer, for the additional financial burden.

In a suo motu statement to the Tamil Nadu Legislative Assembly on August 31, 2020, Vijay outlined the government’s step-by-step approach to supporting dairy farmers amid economic pressures. The latest increase of ₹3 per litre follows an earlier ₹3 hike by the government and ₹1 by cooperative societies just two weeks prior. The cumulative effect of these adjustments brings the procurement price to ₹44 per litre, up from ₹38 in mid-August.

Vijay emphasized that the rising cost of fodder and other inputs had significantly impacted milk producers, necessitating government intervention. To mitigate the financial impact on Aavin, the state-run dairy cooperative, the government will bear the additional cost, projected at ₹60 crore per month. Over a year, this amounts to ₹720 crore in state support, underscoring Tamil Nadu’s commitment to sustaining the dairy sector.

The decision reflects ongoing efforts by the Tamil Nadu government to stabilize milk procurement prices and support farmers during periods of economic stress. Aavin, which plays a central role in the state’s dairy ecosystem, will receive compensation to offset the increased procurement costs. Officials noted that the move aligns with broader agricultural support policies in Tamil Nadu, where dairy farming remains a vital livelihood for many rural communities.

The procurement price hike is expected to benefit thousands of milk producers across Tamil Nadu, particularly small-scale farmers who supply to cooperative societies. By ensuring fair pricing, the state government aims to encourage continued milk production and maintain supply stability in local markets.

#TamilNadu #MilkPriceHike #DairyFarmers #Aavin #CJosephVijay #AgricultureSupport #DairyIndustry