Tamil Nadu Chief Minister C. Joseph Vijay on Monday announced a further Rs 3 per litre increase in the procurement price of milk, raising it from Rs 41 to Rs 44 per litre. The announcement, made under Rule 110 in the Tamil Nadu Legislative Assembly, follows an earlier hike on August 19 that had raised the price from Rs 38 to Rs 41.

The Chief Minister said dairy farmers had urged the government to revise the procurement price because of rising costs of maintaining milch cattle and sharp increases in the prices of cattle feed and other essential inputs. He stated that the measure was aimed at improving the income of dairy farmers and helping them cope with increasing costs of fodder, veterinary care, medicines, labour and transportation.

The government believes that a remunerative procurement price was necessary to sustain milk production and protect the livelihoods of families dependent on dairying, the Chief Minister added.

According to The New Indian Express, the procurement price for buffalo milk will also increase, from Rs 47 to Rs 53 per litre, while the retail price of Aavin milk will remain unchanged. The cumulative Rs 6 a litre hike will impose an additional burden of Rs 60 crore a month, or Rs 720 crore annually, on Aavin, the state-owned dairy cooperative. The Chief Minister said the state government will compensate Aavin for the additional expenditure.

The New Indian Express also reported that the decision is expected to benefit around 16 lakh milk producers associated with 8,800 milk cooperative societies across the state. Other reports mention around 15 lakh dairy farmers.

The latest announcement comes amid protests by a section of dairy farmers who had opposed the earlier Rs 3 a litre hike, claiming it was inadequate in view of rising input costs. Farmers in several parts of the state had staged protests and threatened to halt milk supplies, following which the government held discussions with their representatives, The New Indian Express reported.

The move also fulfils an electoral promise of the ruling TVK, which had assured in its manifesto that Aavin's milk procurement price would be increased to Rs 44 a litre, The New Indian Express noted.

Further details regarding the date from which the revised procurement price will take effect and its financial implications for the state exchequer are expected to be issued separately by the government.

Infrastructure announcements

In addition to the milk price hike, Chief Minister Vijay unveiled a multi-crore infrastructure push spanning power, semiconductors, and logistics across the state.

He announced that ₹33,066 crore has been earmarked for the Tamil Nadu Transmission Improvement Scheme to set up 196 new substations and lay 15,000 km of power lines. A 1,600 MW Super Critical Thermal Power Station will be set up in Tuticorin through a Public-Private Partnership model, involving an investment of ₹20,800 crore.

Chennai's distribution network will receive upgrades worth ₹1,762 crore to combat urban flood resilience and high load demands. A Semiconductor and Electronics Manufacturing Park will be set up at Maduramangalam in Kanchipuram district at a cost of ₹175 crore. Coimbatore is slated to get a ₹400-crore FinTech Hub to accelerate digital financial services.

The Chief Minister also announced plans to establish a multi-modal logistics hub in the Tiruchirapalli region to strengthen industrial supply chains.