Chief Minister Joseph Vijay has announced a further Rs.3 increase in the milk procurement price, raising the price paid to milk producers from Rs.41 to Rs.44 per litre.
The procurement price had been increased from Rs.38 to Rs.41 per litre on August 19, 2026, following demands from milk producers for better returns amid rising cattle-rearing costs.
Making announcements under Rule 110 in the Tamil Nadu Assembly on Monday, Chief Minister Vijay said the latest increase was decided after considering the demands of milk producers and the rising expenditure involved in maintaining milch cattle.
The government had earlier increased the incentive paid through cooperative societies by Rs.1 per litre and raised the incentive component from Rs.3 to Rs.5, taking the procurement price from Rs.38 to Rs.41 per litre.
The latest Rs.3 increase will raise the total procurement price to Rs.44 per litre. The Chief Minister said the additional expenditure would be Rs.60 crore a month and Rs.720 crore a year.
Aavin currently procures around 34 lakh litres of milk every day from 3.16 lakh milk producers associated with 8,800 cooperative milk societies across Tamil Nadu. Around 31 lakh litres are sold daily to consumers through Aavin.
For milk containing 4.3 per cent fat and 8.2 per cent other solids, the procurement price was Rs.35 per litre along with a State incentive of Rs.3, taking the total to Rs.38 per litre from November 5, 2022. The price was subsequently increased to Rs.41 on August 19 and has now been raised further to Rs.44 per litre.
