Tamil Nadu Raises Milk Procurement Price to ₹41 Per Litre
Tamil Nadu Chief Minister C. Joseph Vijay has announced a hike in the procurement price of milk across the State, raising the total rate from ₹38 to ₹41 per litre. The decision, revealed in a suo motu statement in the Legislative Assembly, aims to support the welfare and livelihoods of local milk producers.
What Happened
Speaking in the Legislative Assembly on Wednesday, August 19, 2026, Chief Minister C. Joseph Vijay stated that the procurement rate paid to dairy farmers would see an upward revision of ₹3 per litre in total. Under the revised framework, the base procurement price offered by primary milk cooperative societies is being increased by ₹1, while the State government incentive is being raised from ₹3 to ₹5 per litre.
Previously, the procurement rate stood at ₹35 per litre for milk containing 4.3% fat and 8.2% other nutrients, alongside an incentive of ₹3 provided by the State government, which brought the total payout to ₹38 per litre. With the announced revision, the total payout reaches ₹41 per litre.
During his address, the Chief Minister remarked on the traditional cultural respect for cattle and noted that scientific findings show a cow purifies 500 litres of blood to generate one litre of milk. Highlighting the early morning labour, animal care, and fodder expenses borne by dairy producers, he questioned why past administrations had not addressed these concerns, stating that his administration opted to implement the increase despite financial constraints.
Key Highlights
- Revised Total Price: The procurement price increases from ₹38 per litre to ₹41 per litre.
- Component Breakdown: Primary milk cooperative societies will contribute ₹1 more to the base rate, while the government incentive increases from ₹3 to ₹5.
- Dairy Infrastructure in the State: Tamil Nadu has 8,800 milk cooperative societies sourcing 34 lakh litres of milk from 3.16 lakh producers, with 31 lakh litres distributed via Aavin.
- State Expenditure: The price revision will result in an additional government expenditure of ₹30 crore per month, totaling ₹360 crore annually.
- Quality Standards Mentioned: The standard rate relates to milk containing 4.3% fat and 8.2% other nutrients.
Why This Matters
The measure directly affects over 3.16 lakh milk producers registered across 8,800 primary cooperative societies in the state. By increasing both the cooperative society payment and the direct government incentive, the revision injects additional funds into rural dairy operations. This adjustment also entails a significant commitment from the state exchequer, amounting to an annual expenditure of ₹360 crore to support rural milk producers despite prevailing fiscal pressures.
What to Watch Next
Implementation of the revised rates through the network of 8,800 primary milk cooperative societies across Tamil Nadu, along with the disbursement of the increased ₹5 government incentive.
Frequently Asked Questions
What is the new milk procurement price in Tamil Nadu?
The total milk procurement price has been raised to ₹41 per litre, up from the previous rate of ₹38 per litre.
How is the price increase structured?
Primary milk cooperative societies are increasing their purchase rate by ₹1 per litre, and the State government is increasing its incentive from ₹3 to ₹5 per litre, creating a total increase of ₹3.
How many farmers and cooperatives are involved?
According to official details, Tamil Nadu has 8,800 milk cooperative societies collecting 34 lakh litres of milk from 3.16 lakh producers, with 31 lakh litres distributed through Aavin.
What is the financial impact on the State?
The Chief Minister stated that the revision will cost the State government ₹30 crore per month, which amounts to ₹360 crore per year.
Source: Information in this report is based on official statements reported by The Hindu.