Tamil Nadu Milk Producers Urge Local Milk & Butter Procurement

The Tamil Nadu Milk Producers’ Welfare Association (TNMPWA) has asked the state government to stop procuring milk and butter from outside the state and prioritise purchases from local Tamil Nadu farmers to strengthen rural incomes and support the state’s dairy ecosystem.

The association’s demand comes amid concerns that current procurement prices paid to farmers by Aavin — the Tamil Nadu Co-operative Milk Producers’ Federation — are too low relative to production costs, prompting many producers to sell milk to private buyers who offer higher rates. This has contributed to a shortfall in milk collections by the state cooperative and increased reliance on dairy products sourced from other states.

Farmers and producer representatives argue that procuring locally produced milk and butter at fair prices would bolster farmer incomes — supporting as many as 30 lakh dairy families — and reduce dependency on external supplies. They have also called for an increase in the procurement price by about ₹12 per litre to better reflect rising input costs, especially fodder and feed, and to enhance the viability of cooperative participation.

The call to prioritise local procurement and raise farmer prices highlights structural challenges faced by the Tamil Nadu dairy sector, including competition from private processors offering higher milk prices, procurement inefficiencies, and the need for policy intervention to balance market dynamics and farmer welfare.

Source : Dairynews7x7 Jan 02nd 2026 The Hindu