CHENNAI: The state government has released Rs 140 crore to clear pending dues owed to Aavin’s dairy farmers. This follows a government order (GO) issued by Satyabrata Sahoo, Secretary of Animal Husbandry and Dairy Development, on October 29. The state government introduced a Rs 3-per-litre incentive to boost milk procurement last December, leading to an additional annual expenditure of Rs 360 crore.
Upon releasing these funds, the government set several conditions for Aavin. Firstly, it mandated 100% computerisation of records for Primary Milk Producers Cooperative Societies across the state. Additionally, Aavin must maximise the capacity of its milk processing plants owned by the Milk Producers’ Federation and district unions. The GO also specified that spot acknowledgment receipts for milk suppliers at producer societies should be increased to 30% by December 2024 and 50% by 2025.
Since implementing the incentive, average daily milk procurement has risen from 26.6 lakh litres in January to 34.6 lakh litres in October. Pending dues from July to October totalled Rs 140 crore, while overall incentives since last December have amounted to Rs 295 crore. The dues up to June have been settled. Aavin requested Rs 140 crore to cover the pending amounts from July to October 31, and the GO confirmed it.
Following repeated requests from dairy farmers, the government hiked Aavin’s procurement price by Rs 3 per litre as an incentive. This brings the rate for cow milk to Rs 38 per litre and buffalo milk to Rs 47, with no change to the selling price. To qualify for the full procurement price, milk must meet a minimum quality standard of 4.3% fat and 8.2% solids-not-fat (SNF).
In a statement on Thursday, Aavin stated that it sold sweets and milk products worth Rs 115 crore this festive season, a Rs 10 crore increase from the previous year. S Vineeth, Aavin’s Managing Director, noted that efforts were made to supply milk products and sweets to government departments across the state during the festival period.