Tamil Nadu government raises Aavin milk procurement price by ₹3, yet farmers still concerned — here’s why

Milk producers still concerned

However, milk producers say that it is not a positive development. “Out of the ₹38, we are required to pay ₹1.15 to the cooperative society as administrative charges,” explains Rajendhiran MG, General Secretary, Tamil Nadu Milk Producers’ Welfare Association, to South First.

Rajendhiran explains that the current incentive is applicable only if the milk has 4.3 percent fat and 8.2 percent solid non-fat, a standard met by only 5 percent of milk produced in the state.

“We’ve been urging Aavin to reconsider revising the standard, proposing it be set at 4 percent fat and 8 percent solid non-fat. After all the deductions, a litre of cow milk is purchased at only ₹34 for a majority of farmers. However, the production cost of one litre of milk exceeds ₹50,” he says.

Also Read: Aavin to discontinue its green packet of milk from 25 November

‘Need readjustment of purchase price’

Order No 1062/13.12.2023 stipulates that the Chief Minister of Tamil Nadu will offer an incentive of ₹3 per litre for both cow and buffalo milk to the contributing farmers supplying to Aavin, starting from 18 December 2023.

“This incentive aims to counterbalance the rising costs of inputs for milk production, including animal feed. However, as it is an incentive, it can be withdrawn anytime,” points out SA Ponnusamy, Founder President, Tamil Nadu Milk Dealers Employees Welfare Association, to South First.

“On behalf of the Tamil Nadu Milk Dealers Employees Welfare Association, we earnestly request an adjustment in the procurement price of milk, considering the current production costs,” Ponnusamy adds.

However, seeing this move as a boon to dairy farmers, even Opposition leaders have appreciated the state government. K Annamalai, BJP State President, posted on X, “Tamil Nadu BJP expresses appreciation for this announcement of increased milk procurement prices.”

கடினமாக உழைக்கும் தமிழக விவசாயிகளின் சார்பாக நாங்கள் முன்வைத்த தொடர் கோரிக்கையை ஏற்று,
பால் கொள்முதல் விலை ஏற்றத்திற்கான அறிவிப்பை இன்று தமிழக அரசு வெளியிட்டுள்ளது. இந்த பால் கொள்முதல் விலையேற்றத்திற்கான அறிவிப்பை @BJP4TamilNadu வரவேற்கிறது.

தற்போதுள்ள பால் கொள்முதல் அளவு…

— K.Annamalai (மோடியின் குடும்பம்) (@annamalai_k) December 13, 2023

Also Read: Amul vs Aavin: MK Stalin seeks intervention of Amit Shah

‘Aavin will be at a loss’

Stating that the move to increase the procurement cost would leave Aavin at a loss, Tamil Nadu Milk Dealers Employees Association issued a press release on Thursday afternoon, requesting the state government to increase the milk prices.

“After the DMK government came to power in 2021, they have decreased the selling price of milk by ₹3 per litre. It had left Aavin in ₹877 crore loss,” said S Pon Mariappan, General Secretary of the association.

“While the government should have provided subsidy for Aavin to bear with the losses, it was not done. There is also a major difference between the price of Aavin milk and that of milk from other cooperative societies and private players,” he added.

“Aavin’s milk is anywhere between ₹6 and ₹14 less than Amul and Nandini, and ₹14 to ₹21 less than other private players,” Pon Mariappan said.

It may be noted that immediately after introducing the ₹3 incentive for milk producers last year, Aavin had increased the per-litre selling price of full cream milk (orange packet) to ₹12, except for card holders.

This now has hoteliers and consumers worried that their monthly budget on milk may soon increase. “Aavin’s milk has always been affordable. I hope the government will not increase the prices at a time when we have just suffered from the aftermath of the floods,” said Kamakshi V, a domestic help in Chennai.