Chennai: Tamil Nadu’s state-run dairy cooperative Aavin is grappling with a significant decline in milk procurement, forcing it to reduce daily milk supplies across the state by nearly 3 lakh litres and creating shortages at retail outlets, particularly in Chennai.
Consumers in several parts of the state have reported difficulty purchasing Aavin milk, with packets selling out quickly at booths and many households turning to private brands to meet their daily requirements.
Chennai Among Worst Affected
The supply crunch has been most evident in Chennai, where Aavin’s daily milk distribution has fallen to approximately 13.5 lakh litres, compared to nearly 16 lakh litres supplied in April.
Officials indicated that milk availability has declined by around 30% statewide, reflecting the widening gap between procurement and consumer demand.
Residents across the city say the shortage has become increasingly noticeable over the past few weeks.
“For years we’ve depended on Aavin milk, but now packets disappear soon after delivery. We often have to visit multiple outlets or purchase costlier private brands,” said a resident from Perambur.
Similar concerns have been raised by consumers in several neighbourhoods, who report inconsistent supplies and reduced purchase limits at Aavin booths.
Procurement Declines Sharply
The cooperative’s daily milk procurement has reportedly declined to around 28 lakh litres, significantly lower than the 40–45 lakh litres collected in 2021.
Industry representatives attribute the decline to increasing competition from private dairies, which are offering farmers higher procurement prices and faster payments.
Currently, Aavin procures cow milk at ₹35 per litre and buffalo milk at ₹44 per litre, along with an incentive of ₹3 per litre.
However, dairy farmers allege that incentive payments are often delayed, making private processors more attractive. According to industry sources, several private dairy companies are offering ₹10–12 more per litre than Aavin while ensuring timely payments.
This pricing difference has encouraged many milk producers to shift their supplies to private buyers, reducing the cooperative’s procurement volumes.
Cooperative Faces Financial Pressure
Officials acknowledged that declining milk collection has affected production capacity and contributed to financial stress.
According to Aavin officials, the cooperative has incurred losses of nearly ₹600 crore, limiting its ability to maintain previous supply levels.
“Reduced milk procurement has directly affected production and distribution. Efforts are underway to improve procurement so that normal supplies can be restored gradually,” officials said.
Industry sources also indicated that Aavin has been purchasing milk powder from external suppliers to bridge the gap between procurement and consumer demand.
Industry Seeks Policy Support
The shortage has renewed calls for policy intervention to strengthen the state’s dairy cooperative system.
S.A. Ponnusamy, President of the Tamil Nadu Milk Dealers Employees Welfare Association, urged the state government to revise Aavin’s procurement prices to make them competitive with private dairy companies.
He also suggested reviewing retail milk prices to improve the cooperative’s financial sustainability while proposing the revival of the state’s earlier scheme that distributed milch cows to economically weaker families.
According to the association, expanding dairy animal ownership could increase milk production, improve farmer incomes and strengthen rural livelihoods over the long term.
The organisation plans to submit its recommendations to Tamil Nadu’s Minister for Milk and Dairy Development.
Officials Expect Seasonal Recovery
Senior Aavin officials, however, maintained that the current supply disruption is temporary rather than structural.
They attributed the decline primarily to summer heat stress, which typically reduces milk production in dairy animals during the hottest months of the year.
With seasonal temperatures moderating, officials said milk procurement has already begun improving and supplies are expected to gradually normalise in the coming weeks.
They also clarified that there is no proposal at present to increase Aavin’s retail milk prices, noting that any such decision would require approval from the state government.
Outlook
The current procurement shortfall highlights the growing competition between cooperative and private dairy processors for milk supplies in Tamil Nadu.
Industry experts believe that ensuring competitive procurement prices, timely farmer payments and continued investment in dairy development will be essential for cooperatives such as Aavin to strengthen procurement, maintain consumer confidence and meet rising demand in the state’s milk market.
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