CHENNAI: Chief Minister C Joseph Vijay on Monday announced another Rs 3-a-litre hike in the milk procurement price, taking it from Rs 41 to Rs 44. The increase brings the procurement price in line with the promise made by the ruling TVK in its election manifesto.

Making a statement under Rule 110 in the Assembly, Vijay said the decision was taken in response to requests from milk producers for a higher procurement price amid a rise in the cost of various inputs required for dairy cattle.

The latest hike will benefit 13.16 lakh milk producers associated with cooperative institutions, he said.

Vijay recalled that he had announced a Rs 3 increase in the Assembly on August 19, raising the procurement price from Rs 38 to Rs 41 a litre. With Monday's announcement, milk producers will now receive Rs 44 a litre for milk procured through the State's cooperative milk network Aavin.

The government had taken the decision with the welfare of milk producers in mind, Vijay said. The State will bear the additional financial burden incurred by Aavin due to the latest hike.

The increase will entail an additional expenditure of Rs 60 crore a month and Rs 720 crore annually, he said.