Tamil Nadu agricultural and dairy cooperative developments

In Tamil Nadu, the Cooperation Department has expanded the role of primary agricultural cooperative credit societies by allowing them to sell seeds, fertilizers, and other agricultural inputs for cash at maximum retail prices. This initiative is intended to reach all farmers, including non-members, who are encouraged to join to access low-interest crop loans.

Simultaneously, a dispute has emerged in Tiruchirappalli regarding dairy procurement. While the state government increased procurement prices to Rs 44 per litre for cow milk and Rs 53 for buffalo milk, dairy farmers have protested against significant deductions from these rates. Farmers allege that cooperative societies are docking funds to cover administrative expenses, salaries, and bonuses, which they argue offsets the benefits of the price hike amidst rising fodder costs.

Aavin officials have responded by clarifying that deductions are necessary to cover administrative costs and to fund producer bonuses. They stated that after adjustments, approximately Rs 41.25 per litre is credited to farmers.