Milk producers want State to give subsidy of ₹5 per litre to Aavin

Federation will lose ₹270 cr. a year due to price reduction

Milk producers have urged the State government to give a subsidy of ₹5 per litre of milk to Aavin, which has reduced the sale price by ₹3 per litre. The Tamil Nadu Cooperative Milk Producers Federation, whose popular brand is known as Aavin, will stand to lose ₹270 crore a year due to the price reduction. “The various district unions attached to the federation are already running at a loss and farmers’ dues of ₹500 crore are yet to be paid. The unions are also repaying loans of about ₹250 crore taken to pay farmers’ dues,” said K. Muhammed Ali, State general secretary, Tamil Nadu Milk Producers Association. He went on to say that unless this step was taken, Aavin would slowly sink into a debt trap and farmers would have to depend on private dairies for survival. “Milk consumers did not ask for a price reduction. It was the government’s decision and therefore it should subsidise the loss. The people are asking for a reduction in fuel prices, which the government refuses to give,” he pointed out.