The Tamil Nadu Milk Producers Welfare Association has urged the State government to increase the procurement price of cow's milk to Rs.20.50 a litre and buffalo milk to Rs.31 a litre.
It has also demanded an incentive of Rs.4 a litre for the producers, on the lines of a scheme in vogue in Karnataka.
Addressing reporters here on Sunday, K.A. Sengottuvelu, State president of the association, said fodder prices had been escalating and the hike of Rs.1.10 a litre of cow's milk and Rs.2.20 a litre for buffalo milk, announced by the government recently, was too meagre and unacceptable.
Though the retail price of milk was less in the State, the producers bore the brunt. The State government should come to the rescue of producers by sanctioning a special subsidy, on the lines of rice. M.G. Rajendran, general secretary of the association, said dairy development projects should be taken up on a war footing in the State. The procurement, processing and distribution network should be expanded.
The procurement had come down from 25 lakh litres in 2001 to 18 lakh litres a day now, indicating the need for extending priority to this sector.
R. Rajendran, legal advisor of the association, said that the State government should also regularise the services of the employees attached to the cooperative milk producers' societies with a time scale of pay and retirement benefits.
They said that the association has planned to launch an indefinite strike in support of these demands from February 7. A meeting would be held in Erode in a couple of days to chalk out the agitation plan.