Aavin's procurement price hike disappoints milk producers
Milk producers in Tamil Nadu have expressed disappointment over the government's decision to increase the procurement price by only ₹3 per litre. Farmers argue that rising fodder costs and higher prices offered by private dairies make the current Aavin procurement rate unsustainable.
Why it matters
The pricing dispute highlights the economic struggle of dairy farmers and the competitive challenges faced by state-run cooperatives against private entities.
The hike in milk procurement price announced by the State government seems to have disappointed dairy farmers and other milk producers. It was on Wednesday that Chief Minister C. Joseph Vijay announced a ₹3 hike per litre of milk procured by Aavin. This, milk producers said, was unsatisfactory.
P. Perumal, general secretary of the Tamil Nadu Milk Producers Association, said the government's hike of ₹3 per litre, including ₹1 as procurement price hike and ₹2 as incentive, disappointed milk producers. Currently, the procurement price of ₹38 per litre was given for milk with 4.3% fat and 8.2% solid Non-Fat (SNF).
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