Milk Producers in Coimbatore dissatisfied Over Rs1/L Incentive

Milk producers supplying to cooperative networks in and around Coimbatore have expressed dissatisfaction with the government’s recent decision to provide only an additional ₹1 per litre incentive for milk supplies, saying it fails to adequately address rising input costs and delayed payments critical to livelihoods in the dairy sector.

The additional ₹1 per litre incentive — intended to support milk producers during leaner months — comes on top of existing quality bonuses, but farmers argue the amount is insufficient given steep increases in feed, fodder, cattle healthcare and transportation costs over recent seasons. Producers in the region contend that the cost of producing a litre of milk has risen significantly, and without a larger incentive component tied to actual production costs, many farmers remain financially strained.

Farmers also criticised delays in incentive disbursements from previous schemes, which have compounded cash-flow pressures at the grassroots level and reduced their ability to invest in farm productivity and cattle nutrition. Some producer associations have called on state authorities to review the incentive structure and consider escalating the rate or exploring cost-linked support mechanisms to sustain milk supply amid growing competition from private dairy buyers offering higher procurement rates.

Despite the concerns, cooperative officials maintain that the ₹1 per litre incentive is a short-term relief measure within broader state support policies and suggest that continued dialogue with farmer groups aims to refine future schemes to balance producer viability with fiscal sustainability.

Source : DAirynews7x7 March 2nd 2026 Read full story here

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