Tamil Nadu CM Vijay announces ₹3 per litre hike in procurement price of Aavin milk
CM Vijay said that the gesture will entail the state government an additional expenditure of ₹30 crore per month.
Tamil Nadu Chief Minister C Joseph Vijay announced a significant increase in the procurement price of Aavin milk to ₹41 per litre, effective immediately. The hike, brought about despite the state's financial constraints, aims to support the well-being and livelihood of milk producers, offering them a fair remuneration for their labor.
The state government will provide an incentive of ₹3 per litre, raising the total procurement price from ₹38 to ₹41. This decision will benefit over 3.16 lakh milk producers across the state. Vijay's announcement, made under Rule 110 in the Assembly, highlights the additional monthly expenditure of ₹30 crore the government will face due to this decision.
The state currently procures 34 lakh litres of milk daily, with 31 lakh litres sold to consumers, procuring this milk from approximately 3.16 lakh milk producers who supply milk to 8,800 dairy cooperative societies. The previous procurement price was ₹38 per litre, including a base price of ₹35 and a state incentive of ₹3, set on November 1, 2022.
The government acknowledged that past administrations failed to address the rising costs of animal feed, labor, and the exhaustive efforts of dairy farmers who begin their work as early as 3 AM. The enhanced price comprises a Re 1 increase through the cooperative society and a ₹2 government incentive, summing up to the ₹3 per litre increase.
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