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TODAY · WELFARE · DAY 113

🥛 Milk Procurement Price Raised to ₹44 — Second Hike in 12 Days, ₹6 Cumulative Rise

⏱ 4 min read

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.

📅 August 31, 2026 · Day 113 in Office · Chennai

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.

₹44/LNew Procurement Rate
+₹6/LTotal Rise Since Aug 19
3.16LProducers Benefiting

Second Hike in Twelve Days

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.

₹38 on August 18. ₹41 on August 19. ₹44 on August 31. Three rate points in twelve days — the fastest sequence of dairy procurement price increases in Tamil Nadu’s cooperative history.

Why Now

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.

Context — Farmer Pressure

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

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