CM Vijay Raises Tamil Nadu Milk Procurement Price to ₹44 a Litre

Tamil Nadu Chief Minister C. Joseph Vijay announced a further increase in the procurement price paid for milk collected through primary milk producers’ cooperative societies across the State. The latest increase of ₹3 per litre takes the procurement price to ₹44 per litre. The announcement was made through a suo motu statement in the Tamil Nadu Assembly, with the government presenting the move as additional support for milk producers. The decision comes shortly after another increase in the procurement price, making the latest revision part of a series of measures aimed at improving returns for dairy farmers.

The Chief Minister said the government had previously increased the procurement price by ₹3 per litre, while cooperative societies had added another ₹1 per litre. Together, those changes had raised the price from ₹38 to ₹41 per litre. The latest announcement adds another ₹3 to the procurement price, taking the total rate to ₹44 per litre. The successive revisions are expected to increase the amount received by milk producers supplying their produce through the cooperative network.

The procurement price is an important factor for dairy farmers because it directly influences the income they receive from the milk they supply. Producers face regular expenses related to cattle feed, veterinary care, labour, transportation and maintaining livestock. An increase in the price paid for milk can therefore provide additional financial support to farmers, particularly those who depend heavily on dairy activities as a source of household income.

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The latest decision also comes against the backdrop of the State's cooperative milk procurement system, through which milk is collected from primary producers' cooperative societies. Such societies play an important role in connecting dairy farmers with organised procurement and distribution networks. By raising the procurement rate, the government aims to ensure that producers receive better returns for their milk while strengthening participation in the cooperative system.

The sequence of price increases means producers will now receive a significantly higher procurement rate compared with the earlier level of ₹38 per litre. The government had already announced an increase to ₹41 per litre before the latest revision. With the additional ₹3 increase, the procurement price has now reached ₹44 per litre. The move is expected to be closely watched by dairy producers and cooperative societies as they assess its impact on their earnings and the broader milk procurement system.

The announcement places greater emphasis on improving the economic position of primary milk producers in Tamil Nadu. The higher procurement price could provide additional income to dairy farmers while helping sustain milk production through the cooperative network. The government is expected to implement the revised procurement rate through the relevant cooperative societies, with the impact of the increase likely to become clearer as producers begin receiving payments at the new rate.

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