milk cooperatives revival Tamil Nadu, Madurai dairy cooperatives, Aavin milk procurement, smallholder dairy support, dairy sector rural income
Kerala Milk Price Shock

Tamil Nadu’s dairy push: ₹36 lakh in loans restores grassroots milk supply and livelihoods.

In a targeted dairy sector revival effort, Madurai district’s Milk Cooperative Department has successfully reactivated six previously defunct milk cooperative societies, addressing years of stagnation caused by low milk production and limited farmer participation. This initiative, carried out over six months through December 2025, reflects a concerted push to strengthen grassroots dairy infrastructure and bolster rural incomes.

The six revived societies — including Nakkalapatti, M Kilapatti and Anaikaruppatti Milk Cooperative Societies — now provide vital support to more than 60 local dairy producers, with each society comprising at least 10 active members. By catalyzing cooperative activity, the district aims to improve milk collection and distribution, feeding into Aavin’s broader procurement network in the Madurai division.

Madurai district remains home to around 654 milk cooperatives that collectively handle roughly 1.65 lakh litres of milk per day for the Aavin (Madurai) division, making small co-ops a key part of regional dairy supply chains. District officials emphasized the importance of keeping these grassroots institutions operational, noting their role in sustaining production and supporting smallholder dairy families.

To overcome two key challenges — financial shortfalls and members’ limited herd sizes — local authorities identified active members and provided targeted financial support, distributing a total of ₹36 lakh (₹6 lakh per society) as loans to encourage rostered participation and milk production, and ensure the cooperatives’ viability.

Local farmers welcomed the move as a crucial income lifeline, especially for smallholders who typically maintain only one or two cows. With dairy farming forming an important supplementary income source, stakeholders have urged additional government support, including increased cattle feed subsidies, to further strengthen small dairy operations across the region.

Source: The New Indian Expresshttps://www.newindianexpress.com/states/tamil-nadu/2026/Jan/04/six-milk-co-operative-societies-revived-in-madurai-district

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