Chennai, July 21:
Reports suggest that rising procurement prices offered by private dairies are drawing farmers away from the State-run Aavin, raising concerns of a potential milk supply shortage in Tamil Nadu.
While Aavin currently procures milk at around ₹34 per litre, private companies are offering significantly higher rates ranging from ₹45 to ₹50 per litre, with some regions witnessing even better prices. Farmers say the price gap has made it increasingly difficult to continue supplying milk to the cooperative.
The shift is largely driven by escalating input costs, including cattle feed, medicines, labour and transportation. Dairy farmers pointed out that a 50-kg bag of oil cake now costs nearly ₹1,800, squeezing profit margins under the existing procurement rates.
In addition, many producers are opting to sell milk directly to households, earning between ₹60 and ₹62 per litre, which offers better returns compared to both Aavin and private dairy firms.
Farmer groups have urged the Tamil Nadu government to revise Aavin’s procurement price in line with market trends. They have also sought measures such as subsidies for cattle feed, improved grazing facilities, expanded veterinary services and special incentives to sustain dairy farming.
With procurement under pressure and competition intensifying, stakeholders warn that unless corrective steps are taken, Aavin could face supply constraints affecting milk distribution across the State.