Tamil Nadu Dairy Farmers Demand Increased Budget and Milk Procurement Prices

The Tamil Nadu Milk Producer's Welfare Association (TNMPWA) has called on Chief Minister M.K. Stalin to allocate ₹1,000 crore in the interim budget for the Milk and Dairy Development Department. This demand comes as a response to the financial difficulties faced by approximately 30 lakh individuals involved in milk production in the state.

According to M.G. Rajendran, the general secretary of TNMPWA, the increase in fodder prices has led to a production loss of about ₹10 to ₹15 per litre of milk. The state's daily milk production stands at three crore litres, with 45 lakh litres used for personal consumption and 2.55 crore litres available for sale.

Of the milk available for sale, 37 lakh litres are processed by Aavin, a state-owned cooperative, while 2.18 crore litres are distributed to private companies. However, the procurement prices offered by Aavin are ₹2 to ₹5 less per litre compared to private entities, negatively impacting farmers' income.

Rajendran emphasized the need to increase the procurement price to align with production costs, suggesting that this measure would help Aavin reach its target of handling 73 lakh litres of milk per day by the end of 2026. He also mentioned that procuring milk from other states is not a viable solution.

The association has proposed that the government should offer an incentive of ₹12 per litre to support the 30 lakh people directly affected by these financial challenges. They believe that such measures will strengthen the sector and garner widespread support for the government's initiatives.