This potential increase is particularly significant for Aavin, one of the largest dairy cooperatives in the state. Currently procuring around 36 lakh litres of milk daily, the government aims to boost this volume to 45 lakh litres per day. This ambitious target highlights the state’s focus on expanding its capacity and market share. The Minister noted that a quality-based pricing scheme has been successful and that the government is focusing on improving procurement, processing, and marketing structures within Aavin.

The push for a price hike comes as farmers grapple with rising production costs. While specific figures on feed and labor costs were not detailed, the demand for an increase is a clear indicator of the financial pressures facing the agribusiness sector. By considering a new price hike, the government is attempting to ensure that farmers receive a fairer price for their milk, a crucial factor for their financial viability and for preventing them from shifting their supply to private dairies.

Beyond pricing, the government is implementing several measures to enhance the overall dairy economics of the state. These include initiatives to make loss-making cooperative societies profitable, distributing interest-free loans to farmers, and enhancing Aavin’s milk-handling capacities. The Minister also addressed concerns about milk adulteration, reassuring the public that Aavin milk is rigorously monitored by a dedicated vigilance team and is completely free from such practices.