CHENNAI: The Tamil Nadu government has issued a Government Order (GO) revising the procurement price of milk for Aavin. Milk containing 8.2% SNF (Solid-Not-Fat) and 4.3% fat will qualify for the full procurement price of Rs 44 per litre. The revised prices have taken effect from September 1. However, the retail price of Aavin milk will remain unchanged.
As per the GO, which was released on Friday, cow milk procurement price has been increased from Rs 38 to Rs 44 per litre, while that of buffalo milk has been raised from Rs 47 to Rs 53 — as announced by Chief Minister C Joseph Vijay in the assembly last month under Rule 110.
The order stated that the revised cow milk procurement price comprises a base procurement rate of Rs 36 and an incentive of Rs 8 per litre. The state government will provide Rs 600 crore a year to Aavin towards the incentive, while the district milk producers’ unions will bear an additional Rs 120 crore.
Aavin has also hiked the contribution deducted from milk suppliers towards the administrative expenses of primary milk producers’ cooperative societies from Rs 1.25 to Rs 1.75 per litre. Besides this deduction, the government has said district unions would deduct Rs 1 per litre from suppliers, which would be credited to farmers.
The primary cooperative societies will have to make procurement payments directly to farmers’ bank accounts through direct benefit transfer. The GO added that milk containing less than 3% fat and 7.5% SNF should not be procured, confiscated, and the supplier must not be paid.