CHENNAI: Tamil Nadu Chief Minister C Joseph Vijay on Wednesday announced a hike in the procurement price of Aavin milk from Rs 38 to Rs 41 per litre.
Despite the state facing financial constraints, considering the well-being and livelihood of the milk producers, and in an effort to provide a fair remunerative price for their work, the state government has decided to enhance the milk procurement price, the CM said.
The milk procured through the primary milk cooperative societies of state-owned Aavin would be increased and will include a government incentive of Rs 3 per litre.
The move will benefit over 3.16 lakh milk producers, the chief minister said, making an announcement under Rule 110 in the Assembly.
The gesture will entail the state government an additional expenditure of Rs 30 crore per month, Vijay said, flaying the previous DMK regime for not making any effort to hike the procurement price.
The announcement comes after TNIE reported on Monday that the government was likely to increase the procurement price to encourage dairy farmers to increase supplies to Aavin. The report said Aavin’s daily milk procurement had declined by 4.35 lakh litres between May and July of the current financial year compared with the corresponding period last year.
The TNIE report said the government was considering a hike of Rs 5 per litre for cow milk and Rs 7 per litre for buffalo milk.
Aavin’s procurement price was last revised on November 3, 2022, when the rate for cow milk was increased from Rs 32 to Rs 35 per litre and that for buffalo milk from Rs 41 to Rs 44.
In December 2023, the state government introduced an additional Rs 3-per-litre incentive for milk meeting the prescribed quality standards of 4% fat and 8% SNF. This effectively raised the procurement price to Rs 38 per litre for cow milk and Rs 47 for buffalo milk.
(With Inputs from PTI)