Chennai: For the second time in a month, the state govt hiked the procurement price of milk. Chief minister C Joseph Vijay on Monday announced an increase of ₹3 a litre in Tamil Nadu’s milk procurement price, from ₹41 to 44, benefiting more than 3.16 lakh producers supplying primary dairy cooperative societies.Announcing the decision under Rule 110 in the assembly, Vijay said rising cattle feed and other input costs had prompted the revision. Govt will fully compensate Aavin for the additional expenditure of about ₹720 crore annually.The hike comes less than a fortnight after govt announced an increase of milk procurement price. The Aug 19 revision included a ₹1 rise through cooperative societies and an increase in the govt incentive from ₹3 to ₹5 a litre, taking the overall procurement price from ₹38 to ₹41 for a litre.The decision followed representations from cooperative milk producers’ welfare associations and producers, who cited sharp increases in the cost of green and dry fodder, bran, oil cakes and other farm inputs. DMK whip E V Velu, former chief minister Edappadi K Palaniswami and several legislators had raised the issue through a special call attention motion in the assembly last week.
