The state government has increased the procurement prices of milk for Aavin by ₹3 per litre, from ₹35 for cow milk and from ₹44 for buffalo milk. It will come into effect from December 18.
It will benefit close to four lakh dairy farmers, said the Tamil Nadu Co-operative Milk Producers’ Federation (TNCMPF).
Previously, procurement prices were raised in November last year, but dairy farmers had been demanding a further hike in procurement price citing the production cost involved.
The additional ₹3 would be released to farmers as an incentive to encourage them to produce more milk and to continue to supply milk to Aavin, TNCMPF quoted chief minister M K Stalin as saying.
Aavin approximately procures 32.98 lakh litre of milk daily from 3.87 lakh dairy farmers and distributes 30 lakh litre in retail in the state.
