Tamil Nadu Farmers Seek Higher Aavin Milk Procurement Price

Milk producers in Tamil Nadu have urged state-owned dairy cooperative Aavin to increase its milk procurement prices, arguing that private dairy companies are offering significantly better rates and attracting a growing number of suppliers. Farmer representatives say the widening gap between Aavin's procurement price and private sector payments is making dairy farming increasingly unviable, with many producers shifting their milk supply to private processors that also provide faster and more reliable payments.

The demand comes at a time when Aavin is already facing procurement challenges, with lower milk collections affecting supply across parts of the state. Farmers have called on the Tamil Nadu government to revise procurement prices to remain competitive, warning that unless cooperative rates are improved, more producers may move away from Aavin, further weakening organised milk procurement.

They contend that higher feed, labour and production costs have squeezed margins, making better procurement prices essential to sustain dairy farming. The issue highlights the growing competition between cooperative and private dairy players for raw milk supplies and underscores the need for procurement policies that protect farmer incomes while ensuring a stable milk supply for consumers across Tamil Nadu. (DT Next)

Source: Dairynews7x7 21 July, 2026 Read full story here

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