Milk Prices Rise in Tamil Nadu and Mumbai Amid Higher Production Costs

Tamil Nadu raised its milk procurement price by Rs 3 per litre and Mumbai’s wholesale price by Rs 9 per litre.

Milk prices are set to rise in Tamil Nadu and Mumbai, with dairy producers citing higher cattle feed, transport and maintenance costs. Tamil Nadu recorded a Rs 6 per litre cumulative hike in milk procurement prices in less than two weeks, while Mumbai is set for a Rs 9 per litre increase in wholesale rates from September 1, according to ANI.

In Tamil Nadu, Chief Minister C Joseph Vijay on Monday announced a Rs 3 per litre increase in Aavin’s milk procurement price, raising it from Rs 41 to Rs 44 per litre. The hike will cost the state government an additional Rs 60 crore a month, or Rs 720 crore annually, and comes less than two weeks after the procurement rate was raised from Rs 38 to Rs 41 per litre.

Meanwhile, in Mumbai, the Bombay Milk Producers Association has announced a Rs 9 per litre increase in wholesale milk prices from September 1. The rate will rise from Rs 93 to Rs 102 per litre and remain in effect until February 28, 2027.

Dairy farmers and cattle shed operators in the Mumbai region have attributed the hike to rising costs of green fodder, grain husks and oil cakes, along with higher transportation and livestock maintenance expenses. The Mumbai wholesale increase is expected to push up retail milk prices and raise costs for dairy products such as curd, paneer and sweets, particularly ahead of the festive season.