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Tamil Nadu raises milk procurement price to ₹41 per litre

Tamil Nadu Chief Minister M.K. Stalin announced a significant increase in milk procurement prices, raising the rate from ₹38 to ₹41 per litre. The hike comprises a ₹1 increase from cooperative societies and a boosted government incentive.

LSN India · 19 August 2026

Tamil Nadu raises milk procurement price to ₹41 per litre

Tamil Nadu's government has increased the milk procurement price to ₹41 per litre, marking a substantial rise from the previous rate of ₹38 per litre, Chief Minister M.K. Stalin announced. The price increase reflects the government's commitment to supporting dairy farmers and strengthening the state's milk production sector.

The enhanced procurement price comprises two components: cooperative societies will increase their contribution by ₹1 per litre, while the government incentive will be raised from ₹3 to ₹5 per litre. This combined approach aims to provide dairy farmers with improved returns while maintaining the role of cooperative bodies in milk collection and distribution.

The measure is expected to benefit thousands of dairy farmers across Tamil Nadu who rely on milk procurement schemes for their livelihood. The increased incentive reflects the state government's response to rising production costs and efforts to ensure fair prices for agricultural producers in the dairy sector.