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Tamil Nadu

Aavin delaying Rs. 3/litre incentive payment, say Tamil Nadu dairy farmers

R Jaganathan, a dairy farmer, said they don't know when incentives for July and August would be released. Dairy farmers are under financial stress due to the delay in releasing incentives.

M Saravanan

COIMBATORE: Several dairy farmers in the district complain Aavin has not released incentive of Rs 3 per litre of milk  for the last two months.


R Jaganathan, a dairy farmer from Coimbatore,  said that to maintain the stability of Aavin retail price in the market, the state government announced Rs 3 as incentive in December last year. Normally, Aavin settles the amount for the milk procured to farmers once in ten days. But the incentive is not paid regularly. The incentive for June was released ten days ago. We do not know when July and August incentives would be released. He said dairy farmers are under to financial stress due to the delay in releasing incentives.

MG Rajendran, state general secretary of Tamil Nadu Milk Producers Welfare Association, said, "On an average, a farmer spends Rs 63.25 on input cost to produce one litre of milk. Aavin offers Rs 35 as procurement price for milk that concentration of 4.3% fat and 8.2% Solids Not Fat (SNF).

Due to rise in price of cattle feed, farmers are struggling to maintain cattle at the current procurement price. We have been demanding the government to increase the price for many years. The government did not heed to our demand as raising procurement price will result in rising retail milk price which will afffect consumers. Instead, the government incentive in December 2023. But the payment of incentive is not regular, We fear it may be stopped anytime."

KA Subramaniam, member of Aavin union, said  "The price for concentrated cattle feed has increased by Rs 9 per kg to Rs 26 in one year. Milk producers are struggling to maintain their cattle. Meanwhile the delay adds to their burden."

The secretary of a Aavin milk society said on the condition of anonymity,  "Milk societies that are in sound financially, have been instructed by Aavin orally that they may provide incentive to farmers from their account. But, our society in Pollachi is not able to release the incentive for July and August due to lack of funds."

A senior official from Aavin said, "We have communicated the milk producers' concern to TNCMPF. Once the funds is released, it will be settled directly to farmers." Despite repeated attempts, Minister for Milk and Dairy Development T Mano Thangaraj could not be reached for a comment.

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