Chief Minister C. Joseph Vijay has announced a significant hike in milk procurement prices in Tamil Nadu, raising the rate from ₹38 to ₹41 per litre to support dairy farmers.
- Milk procurement price increased from ₹38 to ₹41 per litre.
- Cooperative societies will raise rates by ₹1, and government incentive rises by ₹2.
- The move will cost the state exchequer ₹360 crore annually.
- Beneficiaries include approximately 3.16 lakh milk producers across 8,800 societies.
In a major boost to the dairy sector, Tamil Nadu Chief Minister C. Joseph Vijay announced in the Assembly on Wednesday that the milk procurement price in the state would be increased from ₹38 to ₹41 per litre. This decision aims to safeguard the livelihoods of millions of small-scale dairy farmers facing rising operational costs.
Breakdown of the Price Hike
The enhancement in the procurement rate is structured through a dual approach. The Chief Minister explained that primary milk cooperative societies will increase their base procurement price by ₹1. Simultaneously, the state government's incentive, which was previously ₹3 per litre, will be scaled up to ₹5 per litre. This combined effort brings the total payout to the new benchmark of ₹41.
"The greatness of our tradition lies in worshipping cows as Gods... the scientific world has proved that a cow has to purify 500 litres of its blood to produce one litre of milk."
Economic Implications and Scale
BozokMedia analysis shows that the scale of this intervention is massive. Tamil Nadu operates a robust network of 8,800 milk cooperative societies that procure roughly 34 lakh litres of milk daily from 3.16 lakh producers. With 31 lakh litres sold through the Aavin brand, the financial impact of this hike is estimated at ₹30 crore per month, totaling ₹360 crore per annum.
Political and Historical Context
Addressing the Assembly, CM Vijay criticized previous administrations for failing to recognize the grueling labor and rising fodder costs incurred by milk producers. Despite facing a financial crisis, the TVK government has prioritized the welfare of the agrarian community, framing the move as a necessary step for social justice and rural stability.
| Component | Old Rate (₹) | New Rate (₹) |
|---|---|---|
| Cooperative Society Rate | 35 | 36 |
| Government Incentive | 3 | 5 |
| Total Procurement Price | 38 | 41 |
Frequently Asked Questions
Question 1: How much more will farmers receive per litre?
Answer: Farmers will receive an additional ₹3 per litre compared to the previous rate of ₹38.
Question 2: Which organization handles the sale of this milk?
Answer: A significant portion of the procured milk, approximately 31 lakh litres, is sold through Aavin.
