Deductions from milk procurement payments have triggered complaints from dairy farmers in Tiruchy, who say they are receiving less than the revised rate announced by the Tamil Nadu government.
The state recently increased the procurement rate for cow milk by Rs 6, taking it from Rs 38 to Rs 44 per litre. The procurement price for buffalo milk was fixed at Rs 53 per litre. The dispute surfaced after payments reached farmers’ bank accounts on October 3.
Producers alleged that cooperative milk societies withheld Rs 4 for every litre of cow milk supplied, reducing their receipts to Rs 40. When farmers sought an explanation, society officials reportedly said the withheld amount covered salaries, administrative costs, festival bonuses and an incentive payable later in the month.
They said the breakup provided to them included Rs 1.85 per litre for salaries and administration, Rs 1.15 for Pongal bonus and Rs 1 retained for payment as an incentive at the end of the month.
Farmers argued that these deductions weakened the relief offered by the price revision, particularly as expenditure on fodder, cattle feed and other inputs rose. They maintained that the government should bear administrative and related costs instead of passing them on to producers.
Aavin’s Tiruchy management, however, gave a different account of the deductions. It said Rs 1.75 per litre was being collected towards the administrative expenses of cooperative milk societies, while another Rs 1 was retained for payment to farmers. Under this calculation, producers would receive Rs 41.25 per litre in their bank accounts after deductions totalling Rs 2.75.
The management said there would be no separate deduction towards bonus. Half of the Rs 1.75 collected would meet society expenses, while the remaining portion would be used to distribute bonuses to milk producers.
Aavin said explanatory handbills were being prepared to clarify the payment structure and provide farmers with a detailed account of how their procurement payments would be calculated.
Producers’ representatives questioned the need to withhold Rs 1 per litre and return it later as an incentive. They urged the milk union to release the full payment immediately. Farmers said earlier deductions were modest, whereas the amounts now withheld strained their finances. They appealed to the government to absorb society expenses and ensure the price increase reached producers in full.
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