Aavin procurement price raised from ₹41 to ₹44 per litre (Rule 110). Cumulative rise of ₹6 since August 19. 3.16 lakh producers. Annual outlay ₹720 crore. Incentive raised from ₹3 to ₹5 per litre.
Chief Minister C. Joseph Vijay announced a second milk procurement price hike in twelve days on Monday, raising Aavin's rate from ₹41 to ₹44 per litre — a cumulative increase of ₹6 per litre since August 19. The announcement was made under Rule 110 of the Tamil Nadu Assembly rules.
The government had raised the procurement price from ₹38 to ₹41 per litre on August 19, announcing ₹360 crore in additional annual support for 3.16 lakh producers. Today's announcement adds a further ₹3 per litre — bringing the cumulative increase since August 19 to ₹6 per litre, and the total additional annual cost to ₹720 crore (₹60 crore per month).
Vijay said the decision was aimed at addressing dairy farmers' growing concerns over rising cattle feed costs and maintenance expenses. The incentive paid to producers has also been increased from ₹3 to ₹5 per litre.
The August 19 hike had already attracted criticism from farmers' associations as insufficient given rising input costs — the Tamil Nadu Farmers' Association had announced a milk-supply strike, though its outcome was not widely reported. The second hike twelve days later suggests the government took that pressure seriously. The total ₹720 crore annual outlay is borne by the state exchequer and channelled through Aavin's cooperative network.
Cattle feed prices have risen significantly over the past two years, squeezing margins for dairy cooperative members. At ₹38, producers had argued that the price did not cover input costs. At ₹41, farmers' associations said the increase was insufficient and announced a strike. At ₹44, combined with the ₹5/litre incentive (up from ₹3), the effective return to producers is substantially higher than it was under the previous government's final rate.
The manifesto tracker records support for dairy farmers as a promised priority. Both the August 19 and August 31 hikes are recorded as delivery.
Milk Procurement Aavin Dairy Farmers August 31, 2026