A farmers’ organisation has urged the Government of Tamil Nadu to increase the milk procurement price to ₹50 per litre for cow milk, stating that higher input costs are making dairy farming increasingly unviable despite stable milk production in the state.
Farmers Cite Rising Production Costs
Speaking on behalf of the Katchi Sarbatra Tamizhaga Vivasayigal Sangam, State Vice-President M. Suresh said dairy farmers in Coimbatore and Tiruppur are under severe financial pressure due to escalating feed, labour, and maintenance expenses.
According to the organisation, the current prices of major cattle feed ingredients include:
- Cottonseed cake (60 kg): ₹2,830
- Rice bran (47.5 kg): ₹880
- Maize flour (50 kg): ₹1,440
The association noted that shrinking grazing land—caused by urbanisation, industrial expansion, and infrastructure development—has forced farmers to rely more heavily on purchased feed, significantly increasing production costs.
Procurement Prices Lag Behind Inflation
Farmers pointed out that procurement prices paid by Aavin and private dairy companies currently range between ₹32 and ₹36 per litre and have remained largely unchanged over the past two to three years despite continuous inflation.
The organisation stated that annual increases of 5–10% in feed, labour, and maintenance costs have eroded dairy farmers’ profitability, particularly for smallholders owning two or three dairy animals.
Demand for Revised Procurement Rates
To ensure the economic sustainability of dairy farming, the association has urged the state government to revise procurement prices to:
- ₹50 per litre for cow milk
- ₹70 per litre for buffalo milk
The group also highlighted the disparity between procurement and consumer prices, noting that while farmers receive ₹32–36 per litre, milk is sold to consumers through various channels at significantly higher prices, with doorstep-delivered cow milk reaching up to ₹60 per litre.
Major Milk-Producing Region
Coimbatore and Tiruppur together produce more than five lakh litres of milk per day, with over 25,000 dairy farmers supplying milk daily. According to dairy officials, the consistent milk inflow reflects stable production levels, although farmer organisations warn that sustained profitability will require procurement prices that better reflect rising production costs.
The demand underscores growing concerns among dairy farmers that improving farmgate milk prices is essential to maintain milk production, support rural livelihoods, and encourage continued investment in the dairy sector.
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