CHENNAI: The Tamil Nadu Dairy Development Department has decided to institutionalise milk production and distribution across the state to streamline the sector and curb adulteration, and is in the process of framing a dedicated dairy policy.
Under the proposed framework, dairy farmers will be enabled to sell milk directly to smaller private players, companies, and other buyers through milk cooperative societies, instead of depending on middlemen.
However, the practice of selling milk at the village level directly to retail consumers will remain unchanged. In this context, Dairy Development Minister Mano Thangaraj held a meeting with private milk companies at the Aavin headquarters on Wednesday.
According to data from the National Dairy Development Board (NDDB), TN produces around 300 lakh litres of milk per day. Aavin accounts for about 12% of the market share, procuring between 34 lakh and 36 lakh litres daily, while the private sector handles around 25%, or nearly 75 lakh litres a day. Nearly 60% of milk production and distribution is unorganised, while 3% to 4% is consumed by farmers themselves.
A John Louis, Director of Milk Production and Dairy Development (DMPDD) and Managing Director of Aavin, said the proposed dairy policy aims to raise institutional milk sales to 50%, thereby ensuring greater consumer safety.
Proposed policy will examine factors affecting milk production
“At present, there is no effective monitoring mechanism to check pathogens, adulteration and other quality issues in milk sold through middlemen. Routing milk through institutions such as cooperative societies will allow smaller milk companies to procure directly, benefiting both farmers and consumers,” he said.
He pointed out that large private dairy companies already have the infrastructure to carry out quality testing of procured milk. “Smaller companies procuring between 5,000 and 10,000 litres a day largely depend on middlemen. The policy seeks to streamline such transactions through cooperative societies,” Louis added.
Currently, milk suppliers to Aavin receive spot acknowledgement after quality testing, with payments released within seven to ten days. The proposed state dairy policy will also examine factors affecting milk production, including input costs, semen production, selection of bulls, use of sex-sorted semen, cattle feed, fodder, and mineral mixtures required for different breeds.
Based on these assessments, the policy will recommend suitable feed for milch cows to improve milk yield. It will also address mating practices in line with the state’s breeding policy announced in 2020. At present, the Dairy Development Department acts as the regulatory authority for the registration and inspection of cooperative societies under the Tamil Nadu Cooperative Societies Act, 1983, while private dairies come under FSSAI.
Sources said once milk sales are routed through cooperative societies, private firms procuring milk through these societies would also come under the purview of Dairy Development Department.
60% of TN milk trade informal
While Aavin accounts for 12% of market share, nearly 60% of milk production & distribution is unorganised in the state