Archive · 21 Aug 2026
Salem Milk Producers Say Tamil Nadu Price Hike Insufficient
Tamil Nadu increased the price it pays farmers for milk.
The price went from Rs.
38 to Rs.
41 per litre.
Milk producers said this increase was too small.
They had asked for Rs.
7 more per litre.
They said cattle feed and other supplies had become more expensive.
A producer representative said private companies pay more than Aavin.
He said less milk is now being supplied to Aavin each day.
He also warned that Aavin’s milk collection could fall further.
Tamil Nadu Chief Minister C Joseph Vijay announced a milk procurement price increase from Rs. 38 to Rs. 41 per litre.
Members of a Salem milk producers’ association said the Rs. 3 increase was inadequate.
Producers had demanded a Rs. 7 per litre increase because cattle feed and other production inputs had become more expensive.
M.G. Rajendran said Aavin’s procurement price was Rs. 12 per litre lower than private milk companies’ offers.
He said Aavin’s daily milk procurement had fallen from 33 lakh litres to 27.5 lakh litres, with 15,000 to 20,000 litres going to private companies each day.
- Who
- Tamil Nadu Chief Minister C Joseph Vijay and members of the Salem milk producers’ association, including M.G. Rajendran.
- What
- The milk procurement price was raised from Rs. 38 to Rs. 41 per litre, but producers said the increase was inadequate.
- When
- The price increase was announced on Wednesday.
- Where
- Salem, Tamil Nadu.
- Why
- The government announced the increase, while producers said higher cattle feed and other input costs required a larger hike.
Tamil Nadu Government
Milk Producers
Adequacy of the price increase
Tamil Nadu Government
The government announced a Rs. 3 per litre increase, raising the procurement price to Rs. 41.
Milk Producers
Producers said the increase was inadequate and that they had demanded a Rs. 7 per litre increase.
Milk procurement and pricing
Tamil Nadu Government
The announced price sets the rate for milk procured by Aavin, though the article does not state the government’s response to concerns about procurement losses.
Milk Producers
M.G. Rajendran said Aavin’s price was Rs. 12 per litre below private companies’ offers, contributing to 15,000 to 20,000 litres per day going to private buyers instead.
- New procurement price
- Rs. 41 per litre
- Previous procurement price
- Rs. 38 per litre
- Producers’ demand
- A Rs. 7 per litre increase
- Aavin’s previous daily procurement
- 33 lakh litres
- Aavin’s current daily procurement
- 27.5 lakh litres
- Milk diverted to private companies
- 15,000 to 20,000 litres per day
- Aavin price gap
- Rs. 12 per litre lower than private milk companies’ offers