Tamil Nadu hikes milk procurement price by Rs 3

CHENNAI: Tamil Nadu government today announced hike in the procurement price of milk on account of increase in input costs but decided not to pass on the burden to consumers.

Chief Minister Jayalalithaa 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, O Panneerselvam and V Murthy, were also present.

Accordingly, government revised the procurement price by Rs 3 both for cow's milk and that of buffalo and 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, Jayalalithaa said.

The new procurement price for a litre of cow's milk will be Rs 23 and Rs 31 for buffalo's milk, she said, adding, the move will benefit 22.50 lakh milk suppliers under cooperative sector. 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. Depite the increase in procurement price, milk prices will not be hiked keeping in mind the interest of the consumers," Jayalalithaa added.