The milk procurement levels in Madurai and Theni districts have increased by around 15,000 litres a day in one week of the government increasing the prices.
With effect from September 1, the procurement price paid by Aavin (Tamil Nadu Milk Producers' Federation) for cow milk was increased by Rs. 2 a litre. For buffalo milk, the hike was Rs. 5 a litre.
Official sources told The Hindu in Madurai on Tuesday that the daily milk procurement level of the Madurai Aavin Union had risen from around two lakh litres a day in the last week of August to nearly 2.17 lakh litres on Monday.
A total of 1,088 milk producing cooperative societies (MPCS) supply milk to Madurai Aavin, which also covers Theni district.
The hike in procurement price seems to have been well received by a large section of dairy farmers as is evident from the increase in the procurement levels. This was mainly due to a reduction in diversion of milk to private players, the sources said.
While usually a hike in selling price results in decreased sales, this time around the sales levels had remained steady at around two lakh litres. Conversely, the sources said, sales had risen marginally by around 2,000 litres a day.
The Madurai Aavin Union's latest product — the fresh cow milk that was launched more than a month back — has also been well received by the public. According to the sources, the sale of fresh cow milk had risen exponentially from around 4,000 litres a day initially to 70,000 litres within 40 days of launch.
The Madurai Aavin was trying to further increase the procurement levels through new initiatives. It had distributed thousands of pamphlets in Madurai and Theni districts popularising the price hike. Notices containing details of the price hike were being distributed to the MPCS.