The Tamil Nadu Milk Producers’ Welfare Association (TNMPWA) has urged Chief Minister M.K. Stalin to allocate ₹1,000 crore to the Milk and Dairy Development Department in the upcoming interim budget, citing mounting losses faced by dairy farmers.
TNMPWA General Secretary M.G. Rajendran said nearly 30 lakh people in Tamil Nadu are engaged in milk production. However, rising fodder costs have pushed producers into losses of ₹10–₹15 per litre of milk.
According to government census data, the State produces around three crore litres of milk per day. Of this, 45 lakh litres (15%) is retained for household consumption, while 2.55 crore litres enter the market. Around 37 lakh litres (12.5%) are supplied to Aavin, with the remaining 2.18 crore litres going to private milk companies.
Rajendran alleged that Aavin offers a procurement price ₹2–₹5 per litre lower than private players, resulting in financial strain for farmers. He argued that increasing the procurement price in line with production costs would benefit both milk producers and Aavin.
Capacity Expansion and Pricing Concerns
Aavin currently handles about 43 lakh litres of milk daily and aims to raise its handling capacity to 73 lakh litres by the end of 2026. Rajendran said achieving this target would require competitive procurement pricing to attract higher volumes from local farmers.
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He also opposed the procurement of milk from other States, stating that priority must be given to supporting Tamil Nadu’s dairy farmers.
Demand for Incentive and Budget Support
The association has demanded an incentive of ₹12 per litre of milk for producers and a budgetary allocation of ₹1,000 crore to strengthen the Milk and Dairy Development Department.
Rajendran said such measures would provide relief to farmers, stabilise procurement, and strengthen the State’s dairy ecosystem, adding that lakhs of milk producers would support the government if their demands are addressed.
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