Dairy farmers in Tiruchy have raised concerns over deductions made by cooperative milk societies from the revised milk procurement price announced by the Tamil Nadu government. The state recently increased the procurement price for cow milk from ₹38 to ₹44 per litre, while buffalo milk procurement has been fixed at ₹53 per litre, fulfilling a long-standing demand from dairy farmers.
However, farmers in the Tiruchy region allege that cooperative milk societies deducted around ₹4 per litre from their payments. The issue came to light after payments were credited to farmers’ bank accounts on October 3.
Farmers say the deductions have reduced the immediate financial benefit expected from the government’s procurement price revision. They are seeking clarity on the deductions and want the full revised procurement price to reach them.
Farmers Raise Questions Over Payment Deductions
S Selvam, a dairy farmer from Punganur, said that only ₹40 per litre was credited to his account against the revised ₹44 procurement price for cow milk. According to Selvam, cooperative society officials explained that different amounts were being retained for administrative and other purposes.
The farmer said the deductions included ₹1.85 towards the salaries of cooperative society employees and administrative expenses, ₹1.15 towards a Pongal bonus and ₹1 as an incentive that would reportedly be paid to farmers at the end of each month.
The deductions have prompted concerns among farmers who expected the procurement price increase to provide immediate financial relief amid rising cattle-rearing expenses.
Revised Procurement Price and Reported Deductions
| Particular | Amount |
|---|---|
| Earlier cow milk procurement price | ₹38/litre |
| Revised cow milk procurement price | ₹44/litre |
| Buffalo milk procurement price | ₹53/litre |
| Amount reportedly credited to some cow milk farmers | ₹40/litre |
| Total deductions alleged by farmers | Around ₹4/litre |
| Reported administrative/staff-related deduction | ₹1.85/litre |
| Reported Pongal bonus deduction | ₹1.15/litre |
| Reported farmer incentive retention | ₹1/litre |
Farmers Seek Full Benefit of Price Revision
Vayalur N Rajendran, treasurer of the farmers’ wing of the Tamil Manila Congress, questioned the deductions and said farmers should receive the benefit of the procurement price increase.
He pointed to the rising cost of cattle feed and the broader expenses involved in maintaining dairy animals. According to him, dairy farmers are already dealing with substantial costs associated with cattle rearing, making the additional deductions a concern.
Farmers argue that the procurement price increase was intended to improve their earnings and provide support amid rising input costs. They are therefore asking the government and cooperative authorities to ensure greater transparency in how payments are calculated.
Aavin Clarifies Administrative Deductions
P Sundara Vadivelu, general manager (in-charge) of Aavin in Tiruchy, provided a different explanation regarding the deductions.
According to the official, ₹1.75 per litre has been deducted towards administrative expenses of milk societies, while ₹1 per litre is being retained and will subsequently be given to farmers.
He also clarified that no amount would be deducted towards a bonus, contradicting the explanation reportedly given to at least some farmers regarding a Pongal bonus deduction.
The clarification indicates that the difference between the revised procurement price and the amount initially credited may partly represent amounts being retained for specific purposes rather than a permanent reduction in the procurement price.
Transparency Becomes Key Issue
The dispute highlights the importance of clearly communicating the payment structure to dairy farmers whenever procurement prices are revised. While cooperative societies may incur administrative and operational expenses, farmers want to know precisely how deductions are calculated and when retained amounts will be paid.
For small dairy farmers, even a difference of a few rupees per litre can have a meaningful impact on monthly income, particularly when feed, veterinary care and other livestock costs remain high.
The Tamil Nadu government’s revised procurement prices represent an increase in the value paid for milk, but the Tiruchy controversy shows that the amount actually received by farmers can depend on deductions and payment arrangements at the cooperative society level.
With farmers seeking the full benefit of the revised rates, further clarification from cooperative authorities could help address concerns and ensure transparency in milk procurement payments across the region.
