Tamil Nadu Hikes Milk Procurement Price to ₹41/Litre

Chennai, August 19, 2026: Tamil Nadu government has announced a ₹3-per-litre increase in the overall milk procurement price, raising the amount paid to milk producers from ₹38 to ₹41 per litre.

Chief Minister Thiru S. Pasap Vijay made the announcement in the Tamil Nadu Legislative Assembly on Wednesday under Rule 110, saying the move was aimed at recognising the hard work of dairy farmers and supporting their livelihoods amid rising production costs.

Under the revised structure, the procurement price paid through milk cooperative societies will increase by ₹1 per litre, while the state government’s incentive will rise from ₹3 to ₹5 per litre.

The decision is expected to benefit more than 3.16 lakh milk producers associated with around 8,800 milk cooperative societies across Tamil Nadu.

At present, the state procures approximately 34 lakh litres of milk every day from these producers. Through Aavin, the state’s dairy cooperative, around 31 lakh litres are sold to consumers daily.

The existing procurement price of ₹38 per litre—comprising ₹35 as the procurement price and ₹3 as the state incentive—has been in effect since November 5, 2022.

Announcing the increase, CM highlighted the rising costs faced by dairy farmers, including cattle feed and labour, as well as the demanding nature of dairy work.

The government said the higher procurement price would result in an additional expenditure of ₹30 crore a month, or approximately ₹360 crore annually.

The Chief Minister said the decision was intended to provide dairy farmers with fairer compensation for their work while strengthening their economic security and livelihood.