Low price and El Nino shrink Aavin’s milk supply, farmers prefer private dairies that offer higher price
Aavin, the Tamil Nadu state-run milk federation, is facing a significant decline in milk procurement due to drought conditions and competition from private dairies. Farmers are increasingly choosing private buyers who offer higher prices and less stringent quality requirements.
Why it matters
The supply shortage threatens the stability of a major public food supply chain and highlights the economic pressures faced by dairy farmers during climate-induced crises.
The Tamil Nadu Cooperative Milk Producers Federation Limited, which markets milk under the Aavin brand, has faced a tough time due to dwindling milk procurement.
The federation that gets milk from district-level cooperative milk producers union, on an average procures 38 lakh litres a day. It reaches its peak in December and January. The procurement, according to official sources, came down to 32 lakh litres a day in February. And subsequently, it fell to 28 lakh litres, forcing the federation to trim its supply to the agents for daily sales. As against the 16 lakh litres of requirement of milk in Chennai, the federation markets only 14 lakh litres of milk.
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