CHENNAI: The Tamil Nadu government will facilitate the purchase of 12,500 milch cows during 2026-27 under medium and mini dairy schemes, aiming to strengthen milk procurement by Aavin and improve rural livelihoods.
The initiative, announced in the Agriculture Budget presented by Minister R. Vinoth, will complement the government’s earlier plan to distribute 10,000 milch cows free of cost. Together, the two initiatives will bring 22,500 milch cows into village-level primary milk producers’ cooperative societies.
The government expects the programme to increase Aavin’s milk procurement by at least 1.5 lakh litres per day over the next few years.
500 medium dairies and 5,000 mini dairies
Of the 12,500 cows planned under the new initiative:
- 2,500 cows will be provided through a new scheme establishing 500 medium-scale dairy units, with five cows per unit.
- 10,000 cows will be added through the existing 5,000 mini dairy scheme, with two cows per unit.
Under the medium dairy scheme, beneficiaries will initially purchase three cows and maintain them for six months before becoming eligible for financial assistance to purchase two additional cows.
Beneficiaries will receive a 25% capital subsidy, while the remaining project cost will be supported through institutional credit at concessional interest rates.
Under the mini dairy scheme, beneficiaries will receive an interest subsidy of 4%.
Focus on reversing Aavin’s procurement decline
The programme comes as Aavin’s average daily milk procurement has declined to approximately 31.5 lakh litres, compared with around 35 lakh litres a year earlier. Several producers have reportedly shifted to private dairies offering higher procurement prices.
Aavin has also faced concerns over declining fat and SNF levels in procured milk.
Officials said the additional cows would provide a dedicated supply base for Aavin, although the full increase in procurement may take one to two years to materialise.
The government will facilitate procurement of approved breeds, including Jersey crossbreds and Holstein Friesians.
Support for cattle feed
The government has also announced subsidised cattle feed for eligible milk producers below the poverty line. Under the scheme, cattle feed will be supplied at ₹2 per kg, at a rate of 3 kg per animal per day for 300 days.
The previous mini dairy scheme enabled 1,625 farmers to purchase 3,363 milch cows during 2025-26, although implementation fell short of the target because of delays in loan disbursement, application approvals and fixation of cattle prices.
Why it matters for the dairy sector
The Tamil Nadu initiative is essentially an attempt to tackle Aavin’s procurement challenge at the farmer level rather than relying solely on higher milk prices.
If successfully implemented, the programme could:
- Expand the number of Aavin-linked dairy farmers.
- Increase assured milk supply to the cooperative.
- Improve rural employment and household income.
- Strengthen village-level milk cooperative societies.
- Reduce dependence on private procurement channels.
- Potentially improve Aavin’s capacity to manufacture value-added dairy products.
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.
