Chennai, August 8: The Tamil Nadu government, led by Chief Minister C. Joseph Vijay, has announced plans to strengthen the rural dairy sector by adding 22,500 dairy cows to the cooperative dairy network. This initiative aims to address the decline in milk procurement by the cooperative dairy brand Aavin.
Under this initiative, 10,000 dairy cows will be distributed free of charge to rural beneficiaries in the 2026-27 fiscal year. Additionally, the government plans to promote the purchase of 12,500 more cows through medium and mini dairy schemes.
This dairy expansion program is part of the latest measures announced by the state government to enhance the livestock sector and increase the income of rural milk producers. Officials expect these efforts to boost Aavin’s daily milk procurement by at least 150,000 liters in the coming years.
Beneficiaries will be linked to primary dairy cooperative societies at the village level, allowing them to supply milk to Aavin. They will also receive subsidies for animal feed and other government assistance. This initiative is particularly crucial as Aavin’s average daily milk procurement has dropped from approximately 3.5 million liters a year ago to about 3.15 million liters now.
Due to better procurement prices, some dairy farmers have shifted to private dairies. Aavin is also facing challenges, including a decline in the average fat and solids-not-fat content of the milk being procured.
Of the proposed 12,500 cows, 2,500 will be purchased for 500 new medium-sized dairy units, with each unit housing five cows. The remaining 10,000 cows will be acquired under the existing mini dairy program, which will include 5,000 units, each with two cows.
Under the medium dairy scheme, beneficiaries will initially purchase three cows and care for them for six months. After this period, they will be eligible for financial assistance to acquire two additional cows.
The government has proposed a 25% capital subsidy on project costs for beneficiaries under the medium dairy program, with arrangements for concessional institutional loans for the remaining amount. Loan facilities will be provided through the Dairy Development Department and the Tamil Nadu Backward Classes Economic Development Corporation. Beneficiaries who purchase two cows under the mini-dairy scheme will receive a 4% interest subsidy.
During the 2025-26 period, this program assisted 1,625 farmers in purchasing 3,363 cows. However, delays in loan disbursement, approvals, and pricing have hindered its implementation.
The government is expected to soon issue guidelines for purchasing approved breeds of cattle, such as Jersey cross-bred and Holstein Friesian.
Another proposal for the dairy sector includes providing subsidized animal feed to eligible milk producers living below the poverty line. This feed will be offered at a rate of ₹2 per kilogram, with each animal receiving three kilograms of feed daily for 300 days.
–
Leave a Comment