Aavin suffered ₹525-crore loss in 2024-25, says Milk Producer’s Association

The Tamil Nadu Milk Producer’s Welfare Association (TNMPWA) on Wednesday (December 17, 2025) claimed that Aavin suffered a loss of ₹525 crore in 2024-25 due to a reduction of ₹3 per litre of Aavin milk.

The association’s State executive meeting was held in Salem on Wednesday and 15 resolutions were passed in the meeting.

Later, addressing the reporters, the association’s general secretary, M.G. Rajendran, said that after the DMK government assumed office, it reduced the price of Aavin milk to ₹3 per litre for consumers. Due to the price reduction, in 2024-25 alone, Aavin suffered a loss of ₹525 crore. All the Aavin unions in districts also suffered losses.

Mr. Rajendran said the State government should calculate the loss of Aavin in the past four-and-a-half years and provide funds, similar to how it provides to the Transport Department and the Tamil Nadu Power Distribution Corporation. The incentive amount to the tune of ₹215 crore has been pending for the past five months and the government should release the funds immediately. In the upcoming budget, the government should allocate a special fund for Aavin or the association will decide to move to the court in this regard, he added.

Stating that milk procurement price should be increased, Mr. Rajendran said that an expert committee should be formed and they must analyse the expenses involved in procuring one litre of milk every year and based on the report, the procurement price should be fixed. The price of the Aavin milk must also be fixed in a similar manner. In 2019, the milk procurement price increased by ₹4 per litre for cow milk and ₹6 for buffalo milk.

Post that, in the last six years, the procurement price was only increased by ₹6. The fodder prices are skyrocketing and milk producers are sustaining losses. Therefore, the concentrated cattle feed should be given with a 50% subsidy. The government must also consider insuring cattle with a 100% subsidy, he said. “The accounts of Aavin should be audited through a chartered accountant instead of a cooperative audit department that comes under the control of the Dairy Development Department,” Mr. Rajendran added.