CHENNAI: Dairy farmers in Tamil Nadu have threatened to stop supplying milk to cooperative societies from August 24, protesting what they describe as an inadequate increase in the State’s milk procurement price.
The Tamil Nadu Milk Producers’ Welfare Association on Thursday said its members would suspend milk supplies unless the government raises the effective procurement price to ₹44 per litre.
Association president R. Rajendran said farmers were disappointed with the recent announcement by Chief Minister C. Joseph Vijay, who raised the effective procurement price from ₹38 to ₹41 per litre through a combination of a higher cooperative procurement price and increased government incentive.
Farmers seek ₹44 per litre
The association has termed the ₹3 increase insufficient, arguing that rising production costs have significantly reduced the profitability of dairy farming.
According to Rajendran, the procurement price itself had not been revised in Tamil Nadu since 2022, when it was increased by ₹3 per litre.
In December 2023, the then State government introduced a ₹3-per-litre incentive for milk producers. Farmers argue that the incentive and procurement price have not kept pace with the increase in input costs since then.
Also Read: Tamil Nadu Raises Milk Procurement Price to ₹41 per Litre, Giving Farmers ₹3 Increase
The association is now demanding an effective procurement price of ₹44 per litre, which would represent another ₹3 increase over the government’s newly announced rate.
Rising input costs squeeze farmers
Farmers say the economics of dairy farming have become increasingly challenging as the prices of cattle feed, fodder and other production inputs have risen.
For small dairy farmers, milk revenue has to cover not only feed but also labour, veterinary care, breeding, electricity, transportation and the cost of maintaining animals during periods of low productivity.
Rajendran also claimed that private dairy companies are offering better procurement prices than Aavin, making it increasingly difficult for the cooperative to retain milk suppliers.
Potential impact on Aavin supply chain
A prolonged supply disruption could put pressure on Aavin’s milk procurement network, particularly because the cooperative depends on a large number of primary milk societies and producers for daily milk collection.
The issue also highlights a recurring challenge for cooperative dairies: maintaining a procurement price that is attractive enough for farmers while keeping the final consumer price affordable and protecting the financial sustainability of the cooperative.
If the proposed strike goes ahead from August 24, the government’s response could become critical to avoiding disruption in milk procurement and ensuring continuity of supply to consumers.
Join Our “Dairy & Food Jobs Updates” WhatsApp group
Follow the Agri Jobs Updates channel on WhatsApp:
Disclaimer
I do my best to share reliable and well-researched insights but occasional errors or omissions may slip through. Please view all content as informational.
Stay informed on all the latest news updates
All Agriculture Books Free Download
All Dairy Technology Books Free Download
All Agricultural Engineering Books Free download
All Horticulture Books Free Download
All Fisheries Science Books Free Download
For Daily Update follow us at:
Facebook Telegram Whatsapp Instagram YouTube
The contents are provided free for noncommercial purpose such as teaching, training, research, extension and self learning.
If you are facing any Problem than fill form Contact Us
If you want share any article related Agriculture with us than send at info@agrimoon.com with your contact detail
