Disappointed dairy farmers threaten to stop milk supply to Aavin from August 24

Disappointed dairy farmers threaten to stop milk supply to Aavin from August 24 Published – August 20, 2026 05: 55 pm IST – TIRUCHI.

Key points

• Rajendran informed presspersons here on Thursday that the procurement rate of milk was not revised in the State after 2022 when the cost was hiked by ₹3 a litre.
• Expressing disappointment over the "meagre increase" in the procurement cost of milk unveiled by Chief Minister C.
• The TVK, in its election manifesto, promised to growth the milk procurement rate to ₹44 a litre.
• Rajendran remarked the reduction of the retail rate by ₹3 a litre by DMK president M.K.
• The latest growth had been unveiled without taking into account all the problems involved.

Expressing disappointment over the "meagre increase" in the procurement cost of milk unveiled by Chief Minister C. Joseph Viay, the Tamil Nadu Milk Producers' Welfare Association on Thursday confirmed that its members would stop supply to the cooperative milk societies from August 24 unless the administration revised the cost to ₹44 a litre.

Association president R. Rajendran informed presspersons here on Thursday that the procurement rate of milk was not revised in the State after 2022 when the cost was hiked by ₹3 a litre. In December 2023, the then administration sanctioned an incentive ₹3 a litre. Since then, cost of cattle feed and other inputs had rose sharply and the rate offered by Aavin did not cover the rose production cost. Private milk dairies were offering a better cost than Aavin.

Notably, the TVK, in its election manifesto, promised to growth the milk procurement rate to ₹44 a litre. "We demand that the government implement the promise now, " Mr. Rajendran remarked.

Mr. Rajendran remarked the reduction of the retail rate by ₹3 a litre by DMK president M.K. Stalin on assuming charge as Chief Minister in 2021 had badly affected the revenue of milk cooperative societies, district unions, and the State federation and affected their viability. "To overcome this, we had been suggesting an increase in the retail price, " he remarked.

For context, the latest growth had been unveiled without taking into account all the problems involved. The Chief Minister had remarked the rate would be growth from ₹35 to ₹36 and the incentive from ₹3 to ₹5 a litre. "We have been demanding an growth of ₹10 per litre in the procurement rate (besides the incentive) for cow's milk but the Chief Minister had rose it by just Re.1 a litre. Dairy farmers were hugely disappointed by the announcement. When private dairies offered up to ₹48 a litre, why should we supply for ₹36 a litre? The Chief Minister should reconsider the decision by August 23, failing which we will stop supplying to the societies from the next day, " Mr.Rajendran remarked.

Taken together, the developments around disappointed dairy farmers threaten to stop milk supply to Aavin from August point to a situation that is still moving, and the coming days should bring more clarity.