Stalin directs Aavin to provide 'incentive' to the milk producers

CHENNAI: In a significant move, Chief Minister MK Stalin on Wednesday directed the Tamil Nadu Cooperative Milk Producers Federation Limited (TNCMPFL) to provide an incentive of Rs 3 per litre to the farmers from December 18.

"Due to an increase in the price of fodder and production cost, the milk producers have demanded the state-run Aavin to increase the procurement price of milk. Considering the request from farmers who supply milk, the Tamil Nadu government has taken a decision on providing an incentive of Rs 3 per litre during the procurement, " said S Vineeth, Managing Director, TNCMPFL.

"Due to this, the price of cow milk will increase from Rs 35 to Rs 38 per litre and the price of buffalo milk will increase from Rs 44 to Rs 47 per litre. This move will come to effect from December 18. Around 4 lakh milk producers/farmers will benefit from this, " he noted.

Further, Stalin has assured that the Government of Tamil Nadu will continue to provide all necessary assistance to Aavin to protect the interest of milk producers and consumers.

Meanwhile, the TNCMPFL urged the milk producers to continue producing large quantities of milk and supply it to Aavin to achieve the upliftment of the rural economy.

Notably, in November, 2022, the Aavin had increased the procurement price of cow and buffalo milk by Rs 3 per litre.

SA Ponnusamy, president of the Milk Agents Welfare Association said, "Although the announcement of incentive for milk procurement is welcome, it should be changed from an incentive and announced as a procurement price hike. Since the incentive can be terminated at any time, the procurement price must be declared Rs 10 per litre. The procurement price should be in line with the selling price of milk. As such, there is a high chance that the sale price of milk will rise again."