Tamil Nadu hikes milk procurement price to Rs 44 as Mumbai wholesale rates jump Rs 9

Chennai: Tamil Nadu Chief Minister Joseph Vijay on Monday announced a further increase in milk procurement prices to Rs 44 per litre, marking a cumulative jump of Rs 6 across the state.

The announcement was made under Rule 110 of Tamil Nadu Assembly rules following rising input costs, as highlighted by stakeholders.

CM Vijay has also announced that a semiconductor park will be set up at Maduramangalam in Kanchipuram district. To tackle power cuts in Chennai, a new electricity corridor will be set up for Rs 1762 crore.


In addition, a new electricity corridor project worth Rs 1550 crore will also be taken up, CM Vijay said.

Earlier in August, the Tamil Nadu government announced a series of major measures under Rule 110, covering milk procurement prices, medical education, healthcare infrastructure and insurance coverage. The government announced an increase in the milk procurement price from ₹38 to ₹41 per litre.

The announcement stated that, as a result of the increase, the government will incur an additional expenditure of ₹30 crore per month and ₹360 crore per year.

In the healthcare and medical education sector, the government has announced ₹351 crore for increasing student admission capacity in government medical colleges. A total of 6,098 additional seats will be created for developing healthcare professionals, including 660 B.Sc. Nursing seats, 1,925 additional seats in nursing colleges and schools, 2,778 seats across 12 paramedical courses, and 735 additional seats in medical courses.

The milk procurement measure is expected to benefit more than 3.16 lakh milk producers. In addition to the increase in the procurement price, the government earlier announced that the incentive will be increased from ₹3 to ₹5 per litre.

On the other hand, Household budgets in Mumbai are set to take a hit ahead of the festive season, with the Bombay Milk Producers Association (BMPA) announcing a Rs 9 per litre hike in wholesale milk prices.

Starting September 1, 2026, the wholesale rate for milk across Mumbai and its adjoining metropolitan supply networks will leap from ₹93 per litre to ₹102 per litre.

The association confirmed that this revised rate will remain locked for a six-month window, staying in effect through February 28, 2027.

This mark represents one of the steepest single-step price adjustments by the association in recent history.

Beyond the morning cup of tea, the price adjustment is set to impact local bakeries, sweet shops (mithai walas), and eateries across the city. As bulk procurement costs rise, consumers can expect secondary price adjustments on everyday dairy staples like curd, paneer, and festive sweets heading into the second half of the year.