Tamil Nadu CM Vijay announces further hike of milk procurement price to ₹44 per litre

Why in news

Tamil Nadu government announced a price hike in milk procurement to support primary producers against rising input costs.

Background

The Tamil Nadu government increased the procurement price of milk by ₹3, bringing it to ₹44 per litre. The state will provide a monthly compensation of ₹60 crore (₹720 crore annually) to Aavin to offset costs.

Facts for Prelims

• FactNew procurement price for milk in Tamil Nadu: ₹44 per litre.
• BodyAavin: The primary milk cooperative society of Tamil Nadu.
• FactAnnual compensation amount for Aavin: ₹720 crore.

For Mains

Q. Discuss the significance of government intervention in procurement prices for ensuring the sustainability of the dairy sector and the welfare of primary producers.

Dimensions to cover in your answer

• Input cost volatility
• Cooperative model viability
• Price stability for consumers

Keywords: Input costs · Procurement price · Cooperative societies · Price support

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