The Tamil Nadu government on Wednesday announced that Aavin milk will be sold at Rs 41 per litre instead of Rs 38, thereby granting some relief to the Tamil Nadu milk farmers.

Vijay announced the move under the Rule 110 of the Assembly of the Tamil Nadu State government, such a move come despite funds crunch in the state, and still took into account the milk producers’ livelihood and welfare. The procurement price will also feature an incentive of Rs 3 per litre for the government.

The hike is likely to bring advantages of more than 3.16 lakh milk producers related to the primary milk cooperative societies in the state. The Chief Minister said that currently, around 3.16 lakh milk producers feed milk to about 8,800 dairy institutions in Tamil Nadu.

About 34 lakh litres of milk are procured by the state every day of which nearly 31 lakh litres are disposed to the consumers.

This will put an extra cost to the State government of about Rs 30 crore per month, Vijay said. He also lashed out at the previous DMK government and said that despite the government’s efforts to help the farmers to rise the dairy farmer had not got any help in increasing the procurement price.

The price at which the central government buys the fuel has not changed since November 1, 2022, when it cost ₹38 per litre. This comprised a base procurement price of Rs 35, and a state incentive of Rs 3 per litre.

The government has pointed out the high cost of cattle feed and labour, and the hard labour that is performed by the farming community that runs the dairy business. To get milk in and on time many farmers would get to work as early as 3 AM.

The current increase is intended to offer dairy farmers a better price for their milk, and bolster the dairy farming cooperative framework in the state.