Tamil Nadu Milk Producers Demand Release of ₹215 Crore in Pending Incentives

The Tamil Nadu Milk Producer’s Welfare Association (TNMPWA) has called on the state government to disburse ₹215 crore in pending incentives to milk producers. According to the association's general secretary, M.G. Rajendran, these funds have been overdue for three months. The situation arose after the Tamil Nadu government reduced the price of milk sold by Aavin by ₹3 per litre, leading to a substantial loss for Aavin, which amounted to over ₹2,000 crore in the last four years.

The government had initially promised a subsidy to cover these losses but has not yet fulfilled this commitment. To support milk producers, the government announced an incentive of ₹3 per litre, starting from November 18, 2023. However, since July, the payments have not been made to Aavin, forcing the company to secure a bank loan to provide the incentives to producers.

Due to financial constraints, Aavin has temporarily halted the release of funds to district unions from October 1, 2025. This financial strain threatens the viability of Aavin's cooperative societies, as producers may shift to private milk companies if the situation persists. Mr. Rajendran highlighted the urgency of the matter, asking Chief Minister M.K. Stalin to consider the interests of the 4.65 lakh milk producers involved and promptly release the pending funds.