With over 3.5 lakh cattle and buffaloes and daily milk production exceeding 5 lakh litres, Dharmapuri district stands as a stronghold in Tamil Nadu’s rural dairy economy. Yet, local farmers say they are not reaping the full benefits due to limited procurement by Aavin and the absence of local value-added dairy production.
Currently, the state-run dairy cooperative Aavin procures only around 1.25 lakh litres of milk per day in Dharmapuri, leaving the lion’s share to private dairy firms that use the milk to manufacture curd, paneer, buttermilk, and other products. Farmers say this gap presents a significant lost opportunity.
“We are urging Aavin to set up units to manufacture branded curd, paneer, butter, and buttermilk within the district,” said J Prathapan, District Secretary of the Tamil Nadu Agriculturist Labourers Association. “Not only would this boost local procurement, but it would also ensure higher earnings for farmers, who currently earn more from Aavin than from private players.”
While Aavin offers Rs 34 to Rs 38 per litre, private dairies pay only Rs 30 to Rs 32, making Aavin the preferred buyer—if only it could purchase more.
S. Chinnasamy, a farmer from Indur, pointed out that Aavin’s presence in local markets is negligible, despite having strong public trust. “People are forced to buy curd, butter, and buttermilk from private companies. If Aavin produces these locally and markets them affordably, both consumers and farmers would benefit.”
Farmers also emphasised that manufacturing value-added dairy products is now beyond the means of most households due to changing lifestyles and the complexity of production. “Nobody churns butter or makes curd at home anymore,” noted M Parthasarathy Mariappan, a local dairy farmer. “If Aavin enters this space, it would empower farmers as both suppliers and consumers.”
Aavin officials stated that the final decision rests with the Tamil Nadu state government, leaving farmers hopeful that strategic support could unlock Dharmapuri’s potential as a hub for value-added dairy innovation.
