CHENNAI: Dairy farmers across Tamil Nadu have urged the State government to increase Aavin's milk procurement price, saying the existing rate is no longer viable amid rising input costs. According to a Daily Thanthi report, many farmers are now supplying milk to private companies, which offer significantly higher prices than the State-run cooperative.
Aavin, the Tamil Nadu government's dairy cooperative, procures milk through cooperative societies operating across all districts. For several years, these societies served as the primary channel through which farmers sold their milk.
However, dairy farmers claim that the procurement price paid by Aavin has not kept pace with the rising cost of cattle feed, labour, and maintenance, forcing many to shift to private buyers.
Farmers said Aavin currently procures milk at an average price of around Rs 34 per litre, while private dairy companies offer prices of up to Rs 50 per litre.
Because of this price difference, many dairy farmers have chosen to sell their milk to private companies instead of cooperative societies. Some farmers said they are also able to earn more by supplying milk directly to households, where a litre can fetch as much as Rs 62, making it much more profitable than selling to Aavin.
Farmers attributed the decline in milk supplied to Aavin to increasing production costs and the shrinking availability of grazing land. Earlier, cattle in villages grazed freely in common lands during the day, reducing the need for purchased fodder. Farmers only had to provide limited quantities of supplements such as rice bran and oil cake, while stored straw and sorghum stalks were sufficient during dry seasons. They said this situation has changed considerably over the years.
With grazing lands shrinking, farmers are now forced to purchase green fodder throughout the year. When green fodder is unavailable, they have to depend more heavily on cattle feed such as bran and oil cake, both of which have become increasingly expensive. According to farmers, a 50-kg bag of oil cake now costs around Rs 1,800, adding significantly to their monthly expenses.
Dairy farmers said the current procurement price leaves them with little or no profit after accounting for feed and maintenance costs. They added that cattle rearing has become financially difficult, prompting several families to reduce the number of milch animals or exit dairy farming altogether. Apart from rising costs, farmers also cited cattle deaths caused by diseases and lower milk production as reasons for the decline in supplies reaching cooperative societies.
They urged the government to revise Aavin's procurement price to levels comparable with those offered by private companies. According to them, a competitive procurement rate would encourage farmers to resume supplying milk to Aavin, strengthen the cooperative network and help ensure a steady supply of milk to consumers across Tamil Nadu.