Milk Procurement Price Hiked by Another Rs. 3: Chief Minister Vijay Announces

The milk procurement price in Tamil Nadu has been increased from Rs. 41 to Rs. 44 per litre, following a further hike of Rs. 3 announced by Chief Minister Joseph Vijay.

The procurement price of Aavin milk in Tamil Nadu had been increased from Rs. 38 to Rs. 41 per litre 10 days ago. However, milk producers continued to demand a further increase in the procurement price.

In response, Chief Minister Vijay made several important announcements in the Tamil Nadu Assembly today under Rule 110. He said that, to benefit more than 3 lakh milk producers, the government had earlier announced on August 19, 2026, that the procurement price would be increased from Rs. 38 to Rs. 41 per litre by raising the cooperative society payment by Rs. 1 and the incentive from Rs. 3 to Rs. 5 per litre.

However, considering the increase in the expenses involved in maintaining milch cattle and the demand from milk producers for a further hike, the government has decided to increase the procurement price by another Rs. 3 per litre to Rs. 44, the Chief Minister announced.

Chief Minister Vijay said the increase in Aavin`s procurement price would result in an additional expenditure of Rs. 60 crore per month and Rs. 720 crore annually.

Aavin Milk Company

Aavin currently procures 34 lakh litres of milk every day from 3.16 lakh milk producers associated with 8,800 milk cooperative societies across Tamil Nadu. Of this, 31 lakh litres of milk are sold daily to consumers through Aavin.

For one litre of milk containing 4.3% fat and 8.2% other solids, the procurement price was Rs. 35 along with a state incentive of Rs. 3 per litre, bringing the total procurement price to Rs. 38. This price had been in effect since November 5, 2022.

The procurement price was increased to Rs. 41 on August 19 and has now been increased by another Rs. 3 to Rs. 44 per litre.

It is noteworthy that the milk procurement price has been revised after nearly four years.