CHENNAI: Chief Minister C Joseph Vijay on Wednesday announced a hike of Rs 3 per litre in the procurement price of Aavin milk, taking it to Rs 41 from Rs 38. The decision will benefit around 3.16 lakh milk producers in Tamil Nadu.

Explaining the cost-sharing mechanism, Vijay said, "Of the enhanced procurement price of Rs 3 per litre, Rs 1 will be borne by the Cooperative Societies and Rs 2 will be provided by the government."

Despite financial constraints, the decision was taken considering the livelihood of dairy farmers to ensure fair remuneration, the Chief Minister noted. The government will incur an additional expenditure of Rs 30 crore per month and Rs 360 crore per annum. Currently, the state pays Rs 38 per litre for milk containing 4.3% fat and 8.2% solids-not-fat.

About 3.16 lakh milk producers supply milk to 8,800 primary dairy cooperative societies across the state. Tamil Nadu procures 34 lakh litres of milk daily, of which 31 lakh litres are sold to consumers, Vijay added.