Chennai: Dairy farmers across Tamil Nadu have appealed to the State government to increase the milk procurement price offered by Aavin, arguing that the current rate is no longer sustainable in the face of rising production costs. Farmers say the widening price gap between Aavin and private dairy companies has prompted many to shift away from the State-run cooperative.
Aavin, the Tamil Nadu government’s dairy cooperative, procures milk through a network of cooperative societies spread across the State. For decades, these societies have served as the primary marketing channel for dairy farmers. However, industry stakeholders say the cooperative is now losing suppliers as private firms offer significantly better prices.
According to farmers, Aavin currently procures milk at an average of around ₹34 per litre, while several private dairy companies pay as much as ₹50 per litre. Some farmers also reported earning up to ₹62 per litre by selling milk directly to households, making private sales a more profitable option.
The shift comes amid mounting input costs. Farmers said shrinking grazing lands have forced them to purchase green fodder throughout the year, while the prices of essential cattle feed, including bran and oil cake, have increased sharply. A 50-kg bag of oil cake now costs around ₹1,800, significantly raising the cost of maintaining dairy cattle.
“In the past, cattle could graze on common lands, reducing feed expenses. Today, with grazing areas disappearing, we are almost entirely dependent on purchased fodder and feed,” a farmer said.
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Beyond rising feed costs, dairy farmers cited higher labour expenses, cattle diseases, declining milk yields and livestock deaths as additional factors affecting profitability. Many said dairy farming has become financially unviable, forcing several families to reduce the number of milch animals or leave the sector altogether.
Farmers warned that unless procurement prices are revised, milk supplies to Aavin’s cooperative network could continue to decline, potentially affecting the cooperative’s procurement capacity.
They have urged the Tamil Nadu government to revise Aavin’s procurement price to a level that better reflects current production costs and is competitive with private market rates. Farmers believe a higher procurement price would encourage producers to return to the cooperative system, strengthen Aavin’s supply chain and ensure a stable supply of milk to consumers across the State.
The demand comes at a time when dairy farmers are seeking greater policy support to sustain milk production amid rising costs and changing rural farming conditions.
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