Dairy farmers in Tamil Nadu are facing financial strain due to delays in receiving incentives from Aavin, with rising costs and inconsistent payments worsening the situation.
Dairy farmers in Tamil Nadu, India, are increasingly concerned about the delays in receiving the Rs 3 per litre milk incentive from Aavin, the state government-owned cooperative responsible for milk procurement and distribution. Aavin, which plays a crucial role in stabilizing milk prices in the state, has been inconsistent in disbursing the incentive payments, further straining the financial stability of the farmers.
Rising Costs Make Dairy Farming Unsustainable
R Jaganathan, a dairy farmer from Coimbatore, pointed out that the incentive was introduced in December 2023 to maintain Aavin’s retail milk prices. While Aavin usually settles milk procurement payments every ten days, the incentive payments have not followed this schedule. The incentive for June was only recently released, leaving farmers unsure about the payments for July and August.
Aavin Union and Associations Voice Concerns
MG Rajendran, the state general secretary of the Tamil Nadu Milk Producers Welfare Association, emphasized the financial challenges faced by the farmers. On average, it costs Rs 63.25 to produce one litre of milk, but Aavin only pays Rs 35 per litre for milk with specific fat and SNF content. With the rising cost of cattle feed, farmers are finding it increasingly difficult to sustain their operations. Although the government introduced the incentive to avoid raising retail milk prices, the irregular payments have compounded the financial burden on the farmers.
KA Subramaniam, a member of the Aavin union, highlighted that the cost of concentrated cattle feed has increased significantly over the past year, adding to the difficulties faced by milk producers. The secretary of an Aavin milk society in Pollachi, who spoke anonymously, mentioned that some financially stable societies have been directed to provide the incentives from their own funds. However, this solution is not feasible for all societies. A senior Aavin official acknowledged the issue and stated that the concerns have been communicated to the Tamil Nadu Cooperative Milk Producers’ Federation (TNCMPF). The official assured that funds would be disbursed to the farmers once available. Despite efforts, Minister for Milk and Dairy Development T Mano Thangaraj was unavailable for comment.
