CHENNAI: Yielding to pressure from dairy farmers, Tamil Nadu Chief Minister C Joseph Vijay on Monday announced another Rs. 3 a litre hike in the milk procurement price paid by Aavin, taking the total increase announced this month to Rs. 6 a litre.
The procurement price for cow milk will now rise from Rs. 38 to Rs. 44 a litre, while that for buffalo milk will increase from Rs. 47 to Rs. 53. The retail price of Aavin milk, however, will remain unchanged.
Announcing the decision under Rule 110 in the Assembly, Vijay said the government had increased the procurement price of cow milk from Rs. 38 to Rs. 41 a litre on August 19 despite Aavin’s financial constraints. "Further, fulfilling the request of dairy farmers, the government has decided to increase it to Rs. 44 a litre,” he said.
The Chief Minister attributed the latest hike to the sustained increase in the cost of fodder, mineral mixtures and other cattle feed.
The decision is expected to benefit 3.16 lakh milk producers associated with 8,800 milk cooperative societies across the State.
The cumulative Rs. 6 a litre hike will impose an additional burden of Rs. 60 crore a month, or Rs. 720 crore annually, on Aavin. The state government will compensate Aavin for the additional expenditure, Vijay said.
The latest announcement comes amid protests by a section of dairy farmers who had opposed the earlier Rs. 3 a litre hike, claiming it was inadequate in view of rising input costs. Farmers in several parts of the state had staged protests and threatened to halt milk supplies, following which the government held discussions with their representatives.
The move also fulfils an electoral promise of the ruling TVK, which had assured in its manifesto that Aavin’s milk procurement price would be increased to Rs. 44 a litre.