Producers told state officials they spend around ₹50 per litre to produce cow milk and ₹60 per litre for buffalo milk, while Aavin’s current procurement prices — ₹38 for cow milk and ₹47 for buffalo milk, inclusive of a ₹3 incentive — leave them with a shortfall of about ₹1.25 per litre on average. With roughly 35–36 lakh litres collected daily from nearly 3.5 lakh farmers, the collective loss is estimated at nearly ₹43 lakh each day.

Farmers argue that private milk buyers offer higher prices — ₹42–₹45 per litre for cow milk with standard fat and solids content — making Aavin’s rates less competitive and contributing to financial strain in rural dairy communities. This price gap is a key driver behind calls for the government to review and increase procurement rates to sustain on-farm viability.

To address the imbalance, dairy producer groups have petitioned Tamil Nadu’s Chief Minister and other officials to commission a comprehensive cost-of-production study and adjust procurement prices accordingly. They also want the state to provide financial support, proposing an allocation of ₹1,000 crore to Aavin’s Dairy Development Department to help absorb rising input costs without forcing further consumer price increases.