The Tamil Nadu Milk Producer’s Welfare Association (TNMPWA) on Thursday (December 4, 2025) demanded that the State government provide ₹215 crore in incentives to milk producers that were pending for the past three months.
Association general secretary M.G. Rajendran said that considering the interest of consumers, the Tamil Nadu government reduced the price of milk sold by Aavin by ₹3 per litre. Due to this, Aavin suffered a loss of more than ₹2,000 crore in the last four years. The government, which promised to provide a subsidy, has not paid the loss amount till date, he alleged.
In order to encourage milk producers, the Tamil Nadu government announced an incentive of ₹3 per litre to milk producers and has been providing it from November 18, 2023. But since last July, the government has not paid the amount to Aavin. In the hope of obtaining this incentive, Aavin obtained a bank loan and provided the pending incentive to milk producers, Mr. Rajendran added.
Mr. Rajendrn said that due to financial crisis, Aavin has temporarily suspended the release of funds to district unions from October 1, 2025. If this situation continues, the producers who supply milk to Aavin associations will move to private milk companies. This will weaken Aavin cooperative societies and the district unions will become ineffective and Aavin will go into ruin. “On behalf of the association, we request Chief Minister M.K. Stalin to immediately release the pending amount, considering the interests of 4.65 lakh milk producers,” Mr. Rajendran added.
Published – December 04, 2025 07:43 pm IST
