Private Milk Prices Rise, Aavin Faces Possible Milk Supply Shortage

Aavin may face a milk supply shortage in Tamil Nadu as more dairy farmers shift to private companies that offer higher milk procurement prices. While Aavin procures milk at around ₹34 per litre, many private dairies are paying ₹45 to ₹50 per litre, with even higher rates offered in some areas.

Farmers say rising costs of cattle feed, medicines, labour, and transportation have made dairy farming more expensive. A 50-kg bag of oil cake now costs around ₹1,800, making it difficult to cover production costs at Aavin`s current procurement price.

Many farmers are also selling milk directly to households, earning ₹60 to ₹62 per litre, which provides better returns than supplying milk to Aavin.

Milk producers have urged the Tamil Nadu Government to increase Aavin`s procurement price to match market rates. They have also requested cattle feed subsidies, better grazing facilities, expanded veterinary services, and special incentives to support dairy farming and ensure a stable milk supply.