CM Vijay announces another Rs 3 hike in milk procurement price

Tamil Nadu Chief Minister C. Joseph Vijay has announced another Rs 3 per litre hike in the milk procurement price, taking it to Rs 44. The move is expected to benefit nearly 3.16 lakh dairy farmers supplying milk through cooperative societies

Chennai: Tamil Nadu Chief Minister C. Joseph Vijay on Monday announced a further increase of Rs 3 per litre in the procurement price of milk, raising it from Rs 41 to Rs 44. The decision is expected to benefit around 3.15 lakh dairy farmers associated with milk producers’ cooperative societies across the state.

The Chief Minister made the announcement under Rule 110 soon after the Tamil Nadu Legislative Assembly reconvened following a two-day weekend break.

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CM Vijay said dairy farmers had urged the government to revise the procurement price because of rising costs of maintaining milch cattle and the sharp increase in the prices of cattle feed and other essential inputs. After examining their representations, the government decided to provide an additional increase of Rs 3 per litre.

The latest revision comes just days after the state government raised the milk procurement price from Rs 38 to Rs 41 per litre.

With the fresh increase, producers will now receive Rs 44 for every litre of milk supplied through the cooperative network.

The Chief Minister said the measure was aimed at improving the income of dairy farmers and helping them cope with increasing cost of fodder, veterinary care, medicines, labour and transportation.

The government believed that a remunerative procurement price was necessary to sustain milk production and protect the livelihoods of families dependent on dairying, he added.

Cooperative milk producers have repeatedly sought a higher procurement price, arguing that their earnings have not kept pace with the cost of cattle feed and other expenses. Many small and marginal farmers depend on the daily income from milk sales to meet household and farm-related expenditure.

The latest decision is expected to provide immediate financial relief to dairy farmers supplying milk to cooperative societies. It could also encourage farmers to continue rearing milch cattle and ensure a steady supply of milk to the state’s cooperative dairy sector.

The government said nearly 3.15 lakh registered milk producers would directly benefit from the revised price.

The higher rate will be applicable to milk procured through milk producers’ cooperative societies. Further details regarding the date from which the revised procurement price will take effect and its financial implications for the state exchequer are expected to be issued separately by the government.