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Updated Aug 8, 2026 · 09:05
Tamil Nadu News Updated Aug 8, 2026

Tamil Nadu Adds 22,500 Cows to Boost Aavin Milk Supply

Tamil Nadu plans to introduce 22,500 additional milch cows into its cooperative dairy network, combining 10,000 free cows for rural beneficiaries with 12,500 via medium and mini dairy schemes in 2026-27. The move aims to reverse Aavin's declining daily procurement, which has dropped from 35 lakh to 31.5 lakh litres annually, and lift it by at least 1.5 lakh litres. Beneficiaries will receive capital subsidies, concessional loans, and interest subsidies, with cattle feed support for below-poverty-line producers. The programme addresses competition from private dairies and lower milk quality by linking farmers to cooperative societies.

Tamil Nadu plans 22,500 milch cows to boost Aavin milk procurement

Chennai, Aug 8

The Chief Minister C. Joseph Vijay-led Tamil Nadu government plans to bring 22,500 additional milch cows into the cooperative dairy network as part of a major effort to strengthen rural dairy farming and reverse the decline in milk procurement by Aavin.

The initiative combines the proposed free distribution of 10,000 milch cows to rural beneficiaries with plans to facilitate the purchase of another 12,500 cows through medium and mini dairy schemes during 2026-27.

Details of the dairy expansion programme were outlined as part of the State government's latest measures to strengthen the livestock sector and improve income opportunities for rural milk producers.

The measures are expected to increase Aavin's daily milk procurement by at least 1.5 lakh litres over the next few years.

Beneficiaries will be linked to village-level primary milk producers' cooperative societies, enabling them to supply milk to Aavin while accessing cattle feed subsidies and other assistance.

The initiative assumes significance as Aavin's average daily milk procurement has declined to around 31.5 lakh litres from approximately 35 lakh litres a year ago.

A section of dairy farmers has reportedly shifted to private dairies offering better procurement prices. The cooperative has also been grappling with a decline in the average fat and solids-not-fat content of milk procured.

Of the 12,500 cows proposed under the dairy schemes, 2,500 will be purchased for 500 new medium-scale dairy units, with five cows in each unit.

Another 10,000 cows will be procured under the continuing mini dairy programme covering 5,000 units, each consisting of two cows.

Under the medium dairy scheme, beneficiaries will initially purchase three cows and maintain them for six months before becoming eligible for financial assistance to acquire another two.

The government has proposed a capital subsidy equivalent to 25 per cent of the project cost for beneficiaries under the medium dairy programme, with concessional institutional credit to be arranged for the remaining amount.

Loans will be facilitated through the Dairy Development Department and the Tamil Nadu Backward Classes Economic Development Corporation.

Under the mini-dairy scheme, beneficiaries purchasing two cows will receive a four per cent interest subsidy.

During 2025-26, the programme helped 1,625 farmers purchase 3,363 cows, though implementation fell short of the target because of delays in loan disbursal, approvals and price fixation.

The government is expected to shortly issue guidelines for procuring approved breeds, including Jersey crossbred and Holstein Friesian cattle.

Another measure proposed for the dairy sector is the supply of subsidised cattle feed to eligible milk producers living below the poverty line.

Feed will be provided at Rs 2 per kg, with each animal eligible for three kg a day for 300 days.

— IANS

Reader Comments

Michael C

Interesting approach to boost milk procurement. The private dairies offering better prices seem to be a real challenge for Aavin. Will these subsidies be enough to make farmers stay with the cooperative? Time will tell, but it's good to see proactive measures being taken.

Priya S

As someone from a farming family in Trichy, I appreciate this move! The mini dairy scheme with 4% interest subsidy is very helpful for small farmers like us. But the government should ensure quick loan disbursal - last year many farmers missed out due to delays mentioned in the article. Hope they learn from past mistakes! 🙏

Jessica F

The decline from 35 lakh to 31.5 lakh litres is concerning. I wonder if the government has also considered improving the quality of milk by providing better feed options. The Rs 2 per kg subsidized feed for BPL families is a step in the right direction, but more needs to be done on the fat content issue.

Kavya N

Finally some attention to dairy farmers! But I'm a bit skeptical about the 25% capital subsidy. Is this enough when private dairies are offering much better prices? The government needs to also look at why Aavin isn't competitive enough. Otherwise, farmers might still prefer selling to private players despite these schemes.

Rajesh Q

Wait, they're setting up 500 medium dairy units with 5 cows each and 5,000 mini units with 2 cows each? That's good for employment generation in rural areas. But I'm concerned about the breeding stock - Jersey crossbred and Holstein Friesian are high-yield but need good management. Will the government provide adequate training? 🥛

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