The Tamil Nadu Milk Producers’ Welfare Association (TNMPWA) has urged the State government not to procure milk and butter from other States and companies.
TNMPWA general secretary, M.G. Rajendran, said since Aavin‘s milk procurement price does not match with the cost of production and private companies offer higher procurement prices in addition to Aavin’s price, members who supply milk to Aavin cooperative societies are switching to private milk companies.
In this situation, Aavin has a shortage of milk and has to take steps to convert milk into butter. It has also been forced to purchase milk from other States and private companies to meet the demand of consumers and that a Government Order (G.O.) might be issued soon in this regard, he averred.
Urging the government not to issue such a G.O. in the interest of the milk producers, Mr. Rajendran said that Aavin was a producer organisation and incurring additional expenses would be covered by increasing the milk procurement price.
“We fear that purchasing milk for private companies would weaken Aavin. If this cooperative society is destroyed, the dominance of private milk companies will prevail, and the milk producers of Tamil Nadu will face hardships and losses. If the milk procurement price is increased accordingly, the volume of milk procurement will increase to the extent expected by Aavin. The selling price of milk should increase accordingly, if the purchasing price of milk increases” he said.
The cost of production of one litre of milk is around ₹50 and the current procurement price is ₹38. If an additional ₹12 per litre is provided, the milk procurement volume of Aavin will increase from 3.5 million litres to five million litres per day. Through this incentive, the government has to spend an additional ₹18 crore per month, which will benefit 30 lakh farmer families, Mr. Rajendran added.
Published – January 01, 2026 07:54 pm IST
