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Tamil Nadu Milk Producers Seek Higher Procurement Prices Amid Rising Dairy Farming Costs

The Tamil Nadu Milk Producers’ Welfare Association has urged the state government to substantially increase milk procurement prices, citing escalating production costs and mounting financial pressure on dairy farmers across the state.

Tamil Nadu Milk Producers Seek Higher Procurement Prices Amid Rising Dairy Farming Costs

The demand was raised during the association’s State Executive Committee meeting held in Salem, where representatives discussed the challenges confronting milk producers supplying milk to the state’s cooperative dairy network, Aavin.

Farmers Face Rising Input Costs

According to the association, dairy farmers are struggling to maintain profitability as expenses related to cattle feed, green fodder, labour, veterinary services, medicines, and animal maintenance continue to rise sharply.

Despite these increasing costs, milk procurement prices have remained unchanged for several years, significantly affecting the viability of dairy farming, particularly for small and marginal producers.

Association leaders noted that several neighboring states have revised procurement prices periodically to support dairy farmers, while producers in Tamil Nadu continue to operate under older pricing structures.

Demand for Procurement Price Revision

The association has requested the government to announce a revised procurement price during the upcoming Tamil Nadu Legislative Assembly session.

Under the proposed revision:

  • Cow milk procurement price should be increased from ₹38 per litre to ₹44 per litre
  • Buffalo milk procurement price should be increased from ₹47 per litre to ₹60 per litre

The organization argues that the proposed hike is necessary to offset increasing production expenses and ensure sustainable dairy farming.

Dairy Farmers Under Financial Stress

Speaking after the meeting, Association President R. Rajendran stated that dairy producers are finding it increasingly difficult to continue operations under the current procurement rates.

“The procurement price has remained unchanged for a long period despite a substantial increase in input costs. Dairy farmers are facing severe economic challenges, and an immediate revision has become essential for the survival of the sector,” he said.

Read More: Started with 1 Cow, Daryaben Built a Dairy Empire; Today She Owns 300 Animals and Earns ₹15 Lakh per Month While Living in a Village

He added that the demand for higher procurement prices has been consistently raised before successive governments over the years.

Additional Demands

Apart from the procurement price revision, the association also passed resolutions seeking broader support measures for dairy farmers.

Key demands include:

  • Strengthening the cooperative dairy sector and Aavin procurement network
  • Introducing subsidized livestock insurance schemes for milk-producing animals
  • Providing greater financial assistance to primary milk cooperative societies
  • Addressing operational and financial challenges faced by village-level milk societies

The association believes these measures would help improve farmer confidence, encourage milk production, and strengthen Tamil Nadu’s dairy economy.

Importance of Procurement Prices

Milk procurement prices directly influence the income of dairy farmers and play a critical role in sustaining milk production. Industry experts note that rising feed costs have become one of the biggest challenges for dairy farmers nationwide, with feed expenses accounting for nearly 60–70 percent of the total cost of milk production.

A revision in procurement prices could provide much-needed relief to producers while helping maintain stable milk supplies for the cooperative sector.

Looking Ahead

As the Assembly session approaches, dairy farmers across Tamil Nadu will be closely watching the government’s response to the association’s demands. Stakeholders believe that a favorable decision could strengthen farmer incomes, support rural livelihoods, and ensure the long-term sustainability of the state’s dairy sector.

With input costs continuing to rise and profit margins narrowing, the issue of milk pricing is expected to remain a key concern for Tamil Nadu’s dairy industry in the coming months.

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