Tamil Nadu Dairy Farmers Demand Increase in Aavin Milk Purchase Prices

Chennai, July 21: Dairy farmers in Tamil Nadu are urging the state government to revise the purchase prices set by Aavin for milk. They argue that rising production costs have made it increasingly difficult to sustain their dairy businesses at current rates.

Farmers have expressed concern over the widening gap between the prices offered by Aavin and those provided by private dairy companies. This disparity is causing many milk producers to distance themselves from the government cooperative.

Aavin is the state’s primary dairy cooperative, purchasing milk through a vast network of cooperatives across Tamil Nadu. For decades, these cooperatives have provided farmers with a reliable market for their milk. However, dairy farmers are now claiming that there has been no increase in milk purchase prices for a long time, despite significant hikes in livestock-related costs.

Currently, Aavin is purchasing milk at an average rate of about 34 rupees per liter, while several private dairy companies are offering prices as high as 50 rupees per liter. Some farmers are even earning more by selling milk directly to households, where prices can reach up to 62 rupees per liter.

Due to the higher prices from private buyers and direct sales, the quantity of milk supplied to Aavin’s cooperatives is steadily declining. Farmers argue that the issue is not just about low purchase prices; the changing economic landscape of dairy farming is also a significant factor.

Previously, livestock could graze freely on common lands, reducing feed costs. However, due to a shortage of grazing areas, farmers now have to purchase green fodder year-round, which has substantially increased production costs.

Many farmers report that the current purchase price only covers production costs, leaving little to no profit from milk sales. As a result, several farmers have reduced the number of milking animals they own, while others have exited the dairy business altogether.

Farmers have also highlighted the deaths of animals due to illness and a decline in milk production as major issues.

Farmer organizations are demanding that the state government align Aavin’s milk purchase prices with those of private dairy companies. They believe that better purchase prices will encourage farmers to reconnect with the cooperative network, strengthen Aavin’s milk collection system, and ensure a stable supply of milk for consumers across Tamil Nadu.