Tamil Nadu Raises Aavin Milk Rate Again After Farmer Protests

A second increase in less than two weeks

Tamil Nadu Chief Minister C. Joseph Vijay has lifted Aavin’s cow-milk procurement price by another ₹3 a litre, taking it to ₹44, after an earlier increase from ₹38 to ₹41 on August 19. Buffalo milk will rise from ₹47 to ₹53 a litre, while the state cooperative’s retail milk prices will remain unchanged.newindianexpress The decision, announced in the Assembly on August 31, completes a cumulative ₹6 increase within the month.dailypioneer

The new rates are expected to cover 3.16 lakh producers linked to 8,800 cooperative societies across Tamil Nadu. Vijay said higher prices for fodder, mineral mixtures and other cattle feed drove the revision, and that the government would reimburse Aavin for the added cost.newindianexpress

Farmer pressure changed the calculation

The first increase failed to settle a dispute that had moved from warnings to disrupted supply. The Tamil Nadu Milk Producers’ Welfare Association had threatened to stop deliveries unless the cow-milk rate reached ₹44, arguing that input costs had risen and private dairies paid more.thehindu Farmers later boycotted collection points in parts of Salem district; the association estimated that statewide Aavin procurement fell by about three lakh litres from its usual 27 lakh litres that day.newindianexpress

The protest was suspended after officials and ministers offered talks. Before the latest announcement, Dairy Development Minister C. Vijayalakshmi had told the Assembly that the government was considering the ₹44 rate. Opposition figures pushed for more: former Chief Minister Edappadi K. Palaniswami sought ₹50 for cow milk and ₹60 for buffalo milk.timesofindia

Relief for producers, a larger public bill

The full ₹6 increase will add an estimated ₹60 crore a month, or ₹720 crore a year, to Aavin’s procurement costs. The state has said it will compensate the cooperative, insulating its customers from an immediate retail increase while delivering the ruling TVK’s manifesto promise of ₹44 for cow milk.newindianexpress

That settlement may not end pressure on the dairy market. Farmers in Salem had demanded ₹60 for buffalo milk, above the newly announced ₹53 rate.newindianexpress Private dairies have also been competing for supply at rates reported between ₹38 and ₹48 a litre. In Coimbatore, some door-to-door vendors recently raised consumer prices by ₹6 to ₹10, taking a litre to between ₹66 and ₹70.newindianexpress Aavin’s unchanged retail prices could help households, but the subsidy shifts the cost of supporting producers onto the state budget.