📷 Image: Wikimedia Commons / Michael Gäbler
Agriculture
Tamil Nadu hikes milk procurement price to Rs 44 per litre
✍️ The Times of India
🗓 31 Aug 2026, 02:33 PM
👁 4
The Tamil Nadu government has raised the rate it pays dairy farmers for milk to Rs 44 per litre, aiming to boost farm incomes.
The state government announced a revision of the milk procurement price, setting the new rate at Rs 44 per litre for dairy producers across Tamil Nadu. The decision was communicated through an official circular issued by the Department of Animal Husbandry and Dairying.
Officials said the increase is intended to improve the earnings of small and marginal dairy farmers, who form the backbone of the state's milk supply chain. By offering a higher purchase price, the government hopes to encourage greater milk production and strengthen the cooperative network that handles collection and distribution.
Industry observers expect the higher rate to translate into better cash flow for dairy cooperatives and may lead to a modest rise in the volume of milk procured from farms. The move aligns with recent efforts in several Indian states to adjust procurement prices in line with rising input costs and market dynamics.
While the exact previous rate was not disclosed, the announcement underscores the administration's focus on supporting the agricultural sector amid broader economic challenges.
Officials said the increase is intended to improve the earnings of small and marginal dairy farmers, who form the backbone of the state's milk supply chain. By offering a higher purchase price, the government hopes to encourage greater milk production and strengthen the cooperative network that handles collection and distribution.
Industry observers expect the higher rate to translate into better cash flow for dairy cooperatives and may lead to a modest rise in the volume of milk procured from farms. The move aligns with recent efforts in several Indian states to adjust procurement prices in line with rising input costs and market dynamics.
While the exact previous rate was not disclosed, the announcement underscores the administration's focus on supporting the agricultural sector amid broader economic challenges.