Dairy farmers supplying milk to the cooperatives will get Rs 3 more a litre from January 1, with the Tamil Nadu Government announcing hike in milk procurement prices.
The selling price is, however, unchanged and consumers will not have to shell out more for ‘Aavin’ milk, the cooperative milk brand.
According to an official press release, procurement price of cow milk and buffalo milk goes up by Rs 3 a litre. From next year, farmers will get Rs 23 a litre for cow milk from Rs 20 and for buffalo milk Rs 31 from Rs 28.
The release said the hike will benefit over 22.50 lakh dairy farmers under thecooperatives. The total additional annual outgo for milk procurement will be Rs 273.75 crore, according to the release.
The decision follows a review meeting after the demand for hike in milk procurement from dairy farmers, the release said.
The hike will offset the increase cost of inputs, including feed and fodder. The procurement price increase is in line with the prices paid by the private sector dairy and the cooperative sector in neighbouring States, the release said.
Despite the procurement price increase, the prices of Aavin milk will not change. Toned milk will continue to be sold at Rs 24 a litre for monthly card holders and Rs 27 in the open market; standardised milk at Rs 14.50 a 500 ml packet and Rs 15.50 in the open market; full cream milk at Rs 16.50 a 500 ml packet and Rs 17.50 in the open market; and double toned milk at Rs 11.50 a 500 ml packet and Rs 12 in the open market.