Milk farmers demand increase in procurement prices, say Aavin prices are very low compared to private dairies

Farmers say their costs, especially of cattle feed have gone up; protesters in Salem have demanded talks with the Dairy Development Minister by October 26

Like many other milk-producing farmers in the State, who are complaining about low procurement prices being paid by the Tamil Nadu Cooperative Milk Producers Federation, farmer Kanthimathi Shanmugam too says she has been spending increasing amount on feeding her cattle.  

“I went to Rasipuram recently to my relative’s house, whose family is also into milk production, and I did not believe them when they said that they get a between ₹37-Rs.40 per litre of milk from a private dairy. We get ₹28 and ₹29 per litre when the fat is just about right. Our family bought cows when agriculture did not pay us much. But our struggles continue. We spend ₹R50 to produce a litre of milk and we want to be compensated accordingly,” she said.

P. Magizhanathan, another farmer who pours milk at the local cooperative society attached to the Federation, whose popular brand is Aavin, said he never calculates his earnings from cattle farming since it is too little. “The only positive aspect is that we get to sell one cow a year. Rearing cattle is a tough job and the family too has to be fully involved in it day-in and day-out,” he said.  

The last time that Aavin increased procurement prices was in 2019 when it agreed to pay an additional ₹4 per litre for cow’s milk with 4.3% of fat and 8.2% of solids non-fat and ₹6 per litre for buffalo milk with 6% fat and 8.8% solids non-fat. At that time there was also a corresponding increase in the selling price of milk, pointed out M.G. Rajendran, Tamil Nadu Milk Producers Welfare Association, who has been parlaying for a hike in procurement prices and a corresponding increase in selling price.  

S. A. Ponnusamy, president, Tamil Nadu Milk Dealers and Employees Welfare Association, said that a hike was very necessary for farmers as well as dealers. “Already private brands have hiked selling prices several times this year and have given a considerable hike to dealers and farmers. The commission we get from Aavin is very low,” he said.

A retired Aavin official said that if the milk-major had to increase procurement prices, the decision had to be made by the State government since it was the government that decided to reduce prices by Rs. 3 per litre after it came to power. “The government should either provide due compensation or allow Aavin to increase selling prices. Even if Aavin were to hike procurement prices by ₹1 a litre, it would have to spend Rs. 10 crore a month, which it cannot bear since many of its unions are running at a loss,” he explained.

On Wednesday, members of the Tamil Nadu Milk Producers’ Welfare Association staged a demonstration near the Salem Collectorate, urging the State government to hike the procurement price of milk and also regularise the job of workers in milk cooperative societies.