Higher price may boost milk procurement by Aavin
The Tamil Nadu government has increased the milk procurement price for Aavin to ₹44 per litre to remain competitive with private dairies. This move aims to reverse a decline in milk procurement caused by farmers switching to private suppliers offering better rates.
Why it matters
Ensuring stable milk procurement is vital for the state's food security and the economic viability of local dairy farmers.
Further increase in procurement price, announced by Chief Minister C. Joseph Vijay in the State Assembly on Monday, is set to boost the milk procurement of the Tamil Nadu Cooperative Milk Producers Federation Limited, which markets milk under the Aavin brand.
The State government had increased the procurement price on August 19 from ₹39 to ₹ 41 a litre. However, it did not go well with farmers and cooperative societies. They contended that it was highly insufficient as input cost went up sharply in recent years. Aavin officials felt that it was not proportionate to the prices offered by the private dairies that offered ₹44 to ₹45 a litre.
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