CHENNAI: The peak of the summer season is yet to set in this year, but across the state, the daily milk procurement of Aavin has already witnessed a decline of 4 to 5 lakh litres.
Besides heat stress among cattle — typically reported during April and May — affecting milk yield, factors such as private firms raising milk procurement prices and an alleged delay in the full disbursement of incentives to Aavin milk suppliers have also resulted in the decline in procurement.
Though tight-lipped Aavin officials are yet to acknowledge the drop in procurement, the dairy cooperative on Thursday invited tenders to purchase 500 MT of butter at Rs 24 crore. Traditionally, Aavin purchases butter for reconstitution, along with milk powder, to boost milk production during shortages.
When contacted by TNIE, Aavin officials claimed the order was for the production of milk products and that there would not be any impact on milk supply to consumers.
Generally, Aavin procures 35.5 lakh litres of milk every day, including 3.5 lakh litres sold by local dairy farmers. Over the last two weeks, the dairy cooperative’s procurement has dropped to 29-30 lakh litres, bringing the total procurement along with the local supply to 31.5 lakh litres a day, according to multiple sources from district cooperative milk producers’ unions.
Suppliers yet to get their incentive dues
Major district unions, including Salem, Tiruchy and Madurai, have reported a daily procurement drop of 40,000 to 60,000 litres, while Vellore and Namakkal witnessed a decline of 10,000 to 15,000 litres a day.
To tackle severe milk shortage during 2022-2023, Aavin introduced a Rs 3-per-litre incentive in December 2023, following which the daily milk procurement increased from 26.6 lakh litres in January 2024 to 35 lakh litres in October 2024.
However, Rs 140 crore in incentive dues, from July to October 2024, are yet to be fully settled to suppliers. Despite a government order (G.O.) issued in March 2025 to release said dues, farmers claim the payment has not been fully disbursed yet.
M G Rajendran of TN Milk Producers’ Welfare Association told TNIE, “As a result [of incentive delay], during milk shortage, a section of farmers have shifted their supply to private dairies offering slightly higher procurement prices.” However, Rajendran admitted that private dairy companies too have seen a marginal decline in procurement since early March.
At present, Aavin pays Rs 38 per litre for cow milk and Rs 47 for buffalo milk, including the Rs 3 incentive. In contrast, private brands offer Rs 40 per litre for cow milk. However, their selling prices of milk are higher by Rs 8-16 a litre, when compared to Aavin.
Meanwhile, industry sources revealed that the dairy sector relies heavily on exotic and crossbred cows, such as Jersey and Holstein Friesian. These breeds are less tolerant to heat than indigenous cattle breeds. While native cows yield two to three litres of milk a day, exotic and crossbred cattle produce six to eight litres daily.
A veterinarian from the animal husbandry depat said, “Native cow breeds are more adaptable to hot climate. In contrast, crossbred and exotic breeds, due to their higher metabolic rates and larger body sizes, find it more challenging to cope with the heat. As a result, their food intake decreases, leading to a decline in milk yield.”
Fact file
Aavin procures milk from about 3.85 lakh producers, through 9,189 primary milk producer cooperative societies across TN
Daily milk procurement till February: 35-36 lakh litres, including 3.5 lakh litres in local sales
Current daily procurement: 31 lakh litres, including local sales
Heat affects the milk yield of crossbreed and exotic breed cattle
The payment of Aavin’s incentive to milk suppliers for November 2024-February 2025 is expected to be delayed further, said sources