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Tamil Nadu government hikes milk procurement price by Rs 3

24 Dec 2013 Evaluate

The government of Tamil Nadu has announced a hike in the procurement price of milk by Rs 3 both for cow’s milk and that of buffalo thereby benefiting 22.50 lakh milk suppliers under cooperative sector. The government has taken this step on account of increase in input costs but has also decided not to pass on the burden to consumers.

The new procurement price for a litre of cow’s milk will be Rs 23 and Rs 31 for buffalo’s milk. The revision will come into effect from January 1, 2014. Milk producers will benefit to the tune of Rs 273.75 crore annually due to the increase.

The Chief Minister of the state approved hiking the procurement price of milk supplied to the state-run milk distributor, Aavin, at a meeting in which her cabinet colleagues including Ministers for Finance and Dairy Development were also present. The decision was taken based on the just demand of milk suppliers who sought revision due to escalating input costs including cattle feed and wages.

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