Tamil Nadu and Mumbai Increase Milk Rates by ₹6 and ₹9

Tamil Nadu’s government has approved an additional ₹3 per litre for raw milk purchased from cooperative farmers supplying Aavin, the state-backed dairy network. The increase follows an earlier ₹3 adjustment introduced less than two weeks before, taking the procurement price from ₹38 to ₹41 per litre and then to a new benchmark of ₹44.

More than 300,000 milk producers affiliated with the cooperative system are covered by the combined ₹6 increase. State authorities estimate that the latest decision will raise government spending by about ₹60 crore a month. On an annual basis, the additional outlay is expected to be approximately ₹720 crore.

The price revisions reflect higher expenses reported across dairy production. Costs have increased for commercial cattle feed, green fodder, grain husks and oil cakes, while farmers and operators also face greater expenditure on transport, animal maintenance and cattle-shed operations.

In Mumbai, the Bombay Milk Producers Association has set a new wholesale rate of ₹102 per litre, up from ₹93. The ₹9 increase takes effect on September 1, and the association has stated that the revised rate will remain in place until February 28, 2027.

Commercial cattle-shed operators and dairy farmers in western India identified rising maintenance and animal-nutrition costs when explaining the Mumbai adjustment. The Tamil Nadu and Mumbai decisions affect different points in the supply chain: procurement payments to cooperative farmers in Tamil Nadu and the wholesale price in Mumbai.

Higher farmgate and wholesale costs are expected to place pressure on retail dairy products during the festival season. Market analysts cited in the report said processors of liquid milk, curd, paneer and traditional milk-based sweets could face tighter margins, with possible retail-price pressure as seasonal demand increases.