Chennai, Aug. 31:
Chief Minister C. Joseph Vijay on Monday announced a ₹3-per-litre increase in the milk procurement price paid to milk producers, raising it from ₹41 to ₹44 per litre.
Making the announcement under Rule 110 of the Tamil Nadu Assembly, Vijay said the decision was taken in response to the demands of milk producers in the State.
The procurement price had earlier been increased from ₹38 to ₹41 per litre. With the latest hike, dairy farmers will now receive ₹44 for every litre of milk procured through the State’s cooperative milk network.
The Chief Minister said the government would bear the additional financial burden incurred by Aavin as a result of the increase. The move is aimed at providing greater financial support to milk producers and strengthening the State’s dairy sector.
The announcement assumes significance as milk producers have been seeking better procurement prices in view of rising costs of cattle feed, veterinary care, labour and other inputs.
The government is expected to communicate the revised procurement price to the State’s milk cooperative network, with the new rate benefiting producers supplying milk through the system.
The Chief Minister’s announcement came during the ongoing Assembly session, where the government has been making a series of policy announcements under Rule 110. The latest measure is expected to provide direct financial relief to dairy farmers while ensuring continued procurement of milk through Aavin.
The government said it would absorb the additional expenditure instead of passing the increased procurement cost on to consumers immediately.