CHENNAI: Chief Minister MK Stalin’s recent statement that the State produces 3 crore litres of milk per day met with controversy as the Tamil Nadu Milk Dealers’ Welfare Association (TNMDWA) has claimed that the figure had been inflated and was based on incorrect inputs from officials.
The CM had made the statement during an interaction at the ‘Kanavugal Meipadum’ event held at the Chennai Trade Centre on March 6. He had also said that the government aims to increase production to 4.5 crore litres per day (LPD) by 2030.
SA Ponnusamy, founder-president of TNMDWA, disputed this claim and alleged that the officials of the Dairy Development department and Aavin had provided misleading statistics to the Chief Minister.
“Aavin’s procurement stands around 30.47 lakh litres per day. Even if procurement by private dairies and cooperative networks in neighbouring states is included, the total milk production will not cross 2.25 crore LPD. How can it be said that the State produces 3 crore litres daily?” he asked.
Ponnusamy further alleged that milk procurement by Aavin has declined significantly in recent years.
Before 2011, Aavin’s milk and dairy product sales stood at around Rs 4,000 crore, which rose to Rs 8,400 crore during the AIADMK regimeSA Ponnusamy, president of TNMDWA
According to him, the previous AIADMK government used to procure around 42 lakh LPD, and since 2021, it has slipped below 30 lakh LPD, reflecting a broader decline in milk production.
He attributed the fall partly to the discontinuation of the free milch cow distribution scheme, which he said had helped farmers expand dairy activity.
The association also pointed to stagnation in Aavin’s financial growth. “Before 2011, Aavin’s milk and dairy product sales stood at around Rs 4,000 crore, which rose to Rs 8,400 crore during the AIADMK regime. But over the past fourand-a-half years, sales have remained at the same level,” he claimed.
A leading private dairy brand from Tamil Nadu (Arokya) has now overtaken Aavin in market size, with sales of about Rs 9,500 crore, the association founder said.
The TNMDWA demanded that the State government initiate action against officials for allegedly providing incorrect data to the Chief Minister and urged the government to revive schemes supporting dairy farmers and establish a welfare board for milk agents, irrespective of whether they deal with Aavin or private dairies.
Rejecting the allegations, Minister for Milk and Dairy Development T Mano Thangaraj clarified that the Chief Minister had referred to the overall milk production of the State, not merely Aavin’s procurement figures.
“The Animal Husbandry and Dairy department compiles total milk production. Farmers sell milk through multiple channels - Aavin, private dairies and local markets. Aavin receives only a portion of the total output. Currently, Aavin procures between 30 lakh and 38 lakh litres per day, while the State’s overall milk production is about 3 crore litres daily,” he told DT Next.
Responding to criticism over reports that Aavin may procure milk from Karnataka’s Nandini dairy brand, the Minister said such arrangements were routine in the dairy business, “When Aavin has surplus milk, it sells to other dairies. Similarly, when there is a shortage, especially during the summer when production dips, procuring milk from other States is a normal commercial practice.”
Official data from the Tamil Nadu Cooperative Milk Producers’ Federation (Aavin) also indicates a marginal dip in procurement. Aavin’s average daily procurement declined from 31,26,147 litres in February 2025 to 30,47,050 litres in February 2026, according to internal communication from the federation.