Tamil Nadu Government Announces Another Hike in Aavin Milk Procurement Prices

Tamil Nadu Chief Minister C Joseph Vijay on Monday announced a further increase in the procurement prices for Aavin milk. The policy decision is aimed at providing financial relief to dairy farmers operating across the state.

Under the newly approved revision, the state government has sanctioned a ₹3 per litre increase in the milk procurement price. This adjustment elevates the procurement rate from the previous ₹41 to ₹44 per litre.

This latest announcement follows a similar upward revision made recently on August 19 in the Assembly. During that earlier session, the government had raised the procurement price from ₹38 to ₹41 per litre, marking the second incremental hike within a brief period.

Aavin, the state-owned dairy cooperative, serves as a primary procurement channel for milk producers throughout Tamil Nadu. Regular adjustments to procurement prices directly impact supplier economics and state-level agricultural supply chains, influencing the operational dynamics for local producers who rely on cooperative networks for their livelihoods.

"Revising procurement prices in the dairy sector is a critical step toward sustaining grassroots supply chains and supporting local producers. For agricultural and cooperative ecosystems, ensuring fair pricing helps maintain producer retention and stability within the supply network. State-led interventions of this scale directly influence operational costs and producer economics in regional markets." — Dr. Shishir Gupta, Founder & CEO, StartupLanes