Tamil Nadu dairy farmers protest for higher prices and loan relief

Dairy farmers from Ramanayakkanpalayam, Thennangudipalayam, Appammasamuthiram and surrounding villages assembled at Selliyampalayam as part of a statewide agitation announced by the Tamil Nadu Milk Producers’ Welfare Association. Some participants poured milk onto the highway during the demonstration.

The farmers said the prices paid by cooperative dairies did not match the cost of producing milk. They cited higher expenditure on cattle feed, veterinary treatment, labour, animal care and other farm operations. The farmers also said that small and marginal producers were under particular financial pressure because milk sales are an important source of regular household income.

Alongside an immediate increase in procurement prices, the protesters sought a waiver of outstanding farm loans. They said debt relief would help dairy households manage their liabilities and continue producing milk. The blockade caused substantial congestion on the Salem–Chennai National Highway before personnel from the Attur rural police station opened discussions with the farmers. The protesters ended the blockade after the talks, and traffic resumed.

The demonstration took place while the Tamil Nadu government was considering a change in the procurement price paid by Aavin, the state dairy cooperative. Dairy Development Minister C Vijayalakshmi said the government was examining an increase from ₹41 to ₹44 per litre. She said the procurement price had already been raised by ₹3 per litre and that further discussions with the Chief Minister would take place before a final decision.

Political leaders have called for prices above the level under consideration. Former minister E V Velu cited increased cattle-feed and maintenance expenses while urging a higher procurement rate. Former Chief Minister Edappadi K Palaniswami proposed a price of ₹50 per litre for cow’s milk and ₹60 per litre for buffalo milk.

Vijayalakshmi also discussed Aavin’s finances in response to the demands. She attributed part of the cooperative’s difficulties to a 2021 decision by the previous government to cut Aavin’s retail milk price by ₹3 per litre. According to the minister, that reduction created an additional annual loss of about ₹270 crore for the cooperative. The dispute concerns the level of payments to producers, retail prices for consumers and Aavin’s financial position.