Dairy farmers in Tamil Nadu are requesting the state government to review Aavin’s milk procurement rates, stating that the current prices are inadequate to support dairy farming amidst rising production expenses. Aavin, the state’s primary dairy cooperative, has historically acquired milk through a network of cooperative societies, but farmers argue that the stagnant procurement rates have not kept up with the escalating costs of cattle rearing. Private dairy companies are offering significantly higher prices, leading to a decline in milk supply to Aavin.
The average procurement price for milk by Aavin stands at about Rs 34 per litre, whereas private dairy firms are offering up to Rs 50 per litre, with direct sales to households fetching prices as high as Rs 62 per litre. This disparity has resulted in a reduction in milk volumes supplied to Aavin’s cooperative network, attributed to both lower procurement rates and changing dynamics in dairy farming economics. Farmers highlight the increased expenses associated with purchasing fodder due to shrinking grazing areas, escalating the financial burden on dairy households.
Farmers are grappling with rising costs of essential items like commercial cattle feed, labor charges, veterinary care, and cattle maintenance, which are eroding profit margins. Many farmers find that the current procurement prices do not cover production costs, leading to diminished income from milk sales. Consequently, some have downsized their milch animal herds, while others have exited dairy farming altogether, citing factors such as disease-related cattle deaths and declining milk yields.
Various farmer groups are urging the state government to enhance Aavin’s procurement prices to align with those offered by private dairy companies. They believe that a higher procurement rate would incentivize farmers to rejoin the cooperative network, bolster Aavin’s milk collection system, and ensure a consistent milk supply to consumers in Tamil Nadu.
