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TN: Aavin procurement price under pressure as dairy farmers seek higher rates

TN: Aavin procurement price under pressure as dairy farmers seek higher rates

Chennai, July 20 (SocialNews.XYZ) Dairy farmers across Tamil Nadu have appealed to the state government to revise Aavin’s milk procurement price, arguing that the current rates are no longer sufficient to sustain dairy farming in the face of soaring production costs.

Farmers say the widening gap between Aavin’s procurement price and the rates offered by private dairy companies has prompted many producers to shift away from the state-run cooperative.

 

Aavin, the government’s flagship dairy cooperative, has traditionally sourced milk through a vast network of cooperative societies spread across the State. For decades, these societies provided farmers with a reliable and assured market. However, dairy producers now contend that stagnant procurement prices have failed to keep pace with the sharp rise in expenses associated with cattle rearing.

According to farmers, Aavin currently procures milk at an average price of about Rs 34 per litre, while several private dairy companies offer up to Rs 50 per litre. Some farmers also earn significantly more by selling milk directly to households, where prices can reach nearly Rs 62 per litre.

Higher returns from private buyers and direct sales have led to a steady decline in the quantity of milk supplied to Aavin’s cooperative network. Farmers attribute the crisis not only to lower procurement prices but also to the changing economics of dairy farming.

They point out that village cattle once grazed freely on common lands, reducing dependence on purchased fodder. Today, shrinking grazing areas have forced farmers to buy green fodder year-round, substantially increasing production costs.

During periods of fodder shortage, farmers rely heavily on commercial cattle feed, including rice bran and oil cake. They say the price of a 50-kg bag of oil cake has risen to around Rs 1,800, placing a heavy financial burden on dairy households. Rising labour charges, veterinary expenses and cattle maintenance costs have further squeezed already thin profit margins.

Several farmers say the present procurement price barely covers production costs, leaving little or no income from milk sales. Many have reportedly reduced the number of milch animals they own, while others have abandoned dairy farming altogether. They also cite disease-related cattle deaths and declining milk yields as additional factors affecting production.

Farmer organisations have urged the State government to revise Aavin’s procurement price to a level comparable with private dairy companies. They argue that a higher procurement rate would encourage producers to return to the cooperative network, strengthen Aavin’s milk collection system and ensure a stable supply of milk to consumers across Tamil Nadu.

Source: IANS

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