CHENNAI: A day after announcing its plan to launch the free distribution of 10,000 milch cows to the rural population in its Budget, the state government has decided to facilitate the purchase of 12,500 milch cows under the medium and mini dairy schemes during 2026-27.
Together, these 22,500 milch cows will be linked to village-level primary milk producers’ cooperative societies to enable beneficiaries to avail of subsidies for cattle feed and other support while supplying milk to Aavin.
The initiative is expected to increase Aavin’s daily milk procurement by at least 1.5 lakh litres over the next few years. The plans were disclosed in the agriculture Budget presented on Thursday by minister R Vinoth.
The move comes at a time when Aavin’s average daily milk procurement has declined to about 31.5 lakh litres from around 35 lakh litres a year ago, as many milk producers have shifted to private dairies offering higher procurement prices. Aavin has also witnessed a decline in milk quality over the past six months, with the average fat and solids-not-fat (SNF) content of procured milk continuing to fall.
Out of the 12,500 milch cows, 2,500 will be procured under a new scheme to establish 500 medium-scale dairy units, each with five milch cows, while the remaining 10,000 cows will be purchased through continuing the existing 5,000 mini dairies scheme, with each unit comprising two milch cows.
Aavin sources told the TNIE that under the medium-scale dairy scheme, beneficiaries will initially have to purchase three milch cows and maintain them for six months. They will then be eligible for financial assistance to buy two milch cows.
The loans for dairy entrepreneurs for purchasing cows will be facilitated through the Dairy Development Department and the TN Backward Classes Economic Development Corporation.
Officials said these initiatives would ensure a dedicated milk supply to Aavin from 22,500 milch cows. “It may take one to two years for the increase in milk procurement to become evident,” a senior Dairy Development Department official said.
Minister Vinoth said beneficiaries under the medium dairy scheme would receive a capital subsidy of 25% of the project cost, while institutional credit at concessional interest rates would be arranged for the remaining amount.
Under the mini dairy scheme, each beneficiary setting up a unit with two milch cows will receive an interest subsidy of 4%. Official records show that the scheme, launched last year, enabled 1,625 farmers to purchase 3,363 milch cows during 2025-26.
Aavin officials said that the scheme fell short of its target last year due to delays in loan disbursal, application approvals, and fixation of milch cow price. “The department will begin procurement of Jersey crossbred, Holstein Friesian and other approved breeds. A G.O is expected soon,” said an official.
The minister also announced that eligible milk producers living below the poverty line will be supplied cattle feed at Rs 2 per kilogram, at the rate of 3 kg per animal per day for 300 days.