Aavin dairy in Tamil Nadu faces supply shortfall as farmers shift to private dairies

Tamil Nadu's state‑run dairy cooperative Aavin is experiencing a significant drop in milk procurement. Dealers and farmer groups say that private dairies are paying higher prices—Rs 50‑55 per litre for cow’s milk and up to Rs 60 for higher‑fat milk—prompting many producers to move their supply away from Aavin, which pays Rs 38‑44 per litre. As a result, daily procurement has fallen from about 38.26 lakh litres to roughly 25 lakh litres, and a weekly shortfall of around 10,000 litres has been reported in Tiruchy, leaving vendors unable to meet demand.

The Tamil Nadu Milk Dealers' Welfare Association, led by SA Ponnusamy, met with Milk and Dairy Development Minister C Vijayalakshmi and submitted a memorandum seeking a Rs 10 per litre increase in procurement price, higher dealer commissions, and the revival of the free milch cattle scheme and subsidised cattle feed. The minister said the demands would be discussed with Chief Minister C Joseph Vijay. The association argues that without price revisions and support measures, the cooperative’s financial sustainability and the livelihoods of over 30 lakh families dependent on dairy farming are at risk.