TN: Aavin procurement price under pressure as dairy farmers seek higher rates
Chennai, July 20
Dairy farmers across Tamil Nadu have appealed to the state government to revise Aavin's milk procurement price, arguing that the current rates are no longer sufficient to sustain dairy farming in the face of soaring production costs.
Farmers say the widening gap between Aavin's procurement price and the rates offered by private dairy companies has prompted many producers to shift away from the state-run cooperative.
Aavin, the government's flagship dairy cooperative, has traditionally sourced milk through a vast network of cooperative societies spread across the State. For decades, these societies provided farmers with a reliable and assured market. However, dairy producers now contend that stagnant procurement prices have failed to keep pace with the sharp rise in expenses associated with cattle rearing.
According to farmers, Aavin currently procures milk at an average price of about Rs 34 per litre, while several private dairy companies offer up to Rs 50 per litre. Some farmers also earn significantly more by selling milk directly to households, where prices can reach nearly Rs 62 per litre.
Higher returns from private buyers and direct sales have led to a steady decline in the quantity of milk supplied to Aavin's cooperative network. Farmers attribute the crisis not only to lower procurement prices but also to the changing economics of dairy farming.
They point out that village cattle once grazed freely on common lands, reducing dependence on purchased fodder. Today, shrinking grazing areas have forced farmers to buy green fodder year-round, substantially increasing production costs.
During periods of fodder shortage, farmers rely heavily on commercial cattle feed, including rice bran and oil cake. They say the price of a 50-kg bag of oil cake has risen to around Rs 1,800, placing a heavy financial burden on dairy households. Rising labour charges, veterinary expenses and cattle maintenance costs have further squeezed already thin profit margins.
Several farmers say the present procurement price barely covers production costs, leaving little or no income from milk sales. Many have reportedly reduced the number of milch animals they own, while others have abandoned dairy farming altogether. They also cite disease-related cattle deaths and declining milk yields as additional factors affecting production.
Farmer organisations have urged the State government to revise Aavin's procurement price to a level comparable with private dairy companies. They argue that a higher procurement rate would encourage producers to return to the cooperative network, strengthen Aavin's milk collection system and ensure a stable supply of milk to consumers across Tamil Nadu.
— IANS
Reader Comments
Honestly, this is a double-edged sword. If Aavin increases procurement prices, will they pass on the cost to consumers? But if they don't, farmers suffer more. The price of oil cake at Rs 1,800 per bag is too high, and grazing land is disappearing. I feel bad for small dairy farmers - they are the ones who are really struggling. 🐄😔
Interesting how the dynamics are changing in India. In many developed countries, dairy cooperatives are strong and protect farmers. Here, cooperatives like Aavin are losing their grip because of price inefficiencies. Unless Tamil Nadu's government provides subsidies for feed or revises the pricing structure, we'll see more farmers shift to private dairies. And that might hurt the rural economy in the long run.
Their demands are valid! When inflation is hitting everything - from cattle feed to veterinary costs - how can Aavin expect farmers to survive on Rs 34 per litre? Meanwhile, the state government is always talking about farmer welfare. Time to walk the talk and support our dairy farmers. They are the ones who ensure we have milk for our morning coffee and chai. ☕🐄
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.