The initiative combines the proposed free distribution of 10,000 milch cows to rural beneficiaries with plans to facilitate the purchase of another 12,500 cows through medium and mini dairy schemes during 2026-27.
Details of the dairy expansion programme were outlined as part of the state government’s latest measures to strengthen the livestock sector and improve income opportunities for rural milk producers. The measures are expected to increase Aavin’s daily milk procurement by at least 1.5 lakh litres over the next few years.
Beneficiaries will be linked to village-level primary milk producers’ cooperative societies, enabling them to supply milk to Aavin while accessing cattle feed subsidies and other assistance.
The initiative assumes significance as Aavin’s average daily milk procurement has declined to around 31.5 lakh litres from approximately 35 lakh litres a year ago. A section of dairy farmers has reportedly shifted to private dairies offering better procurement prices. The cooperative has also been grappling with a decline in the average fat and solids-not-fat content of milk procured.
Of the 12,500 cows proposed under the dairy schemes, 2,500 will be purchased for 500 new medium-scale dairy units, with five cows in each unit. Another 10,000 cows will be procured under the continuing mini dairy programme covering 5,000 units, each consisting of two cows.
Under the medium dairy scheme, beneficiaries will initially purchase three cows and maintain them for six months before becoming eligible for financial assistance to acquire another two. The government has proposed a capital subsidy equivalent to 25 per cent of the project cost for beneficiaries under the medium dairy programme, with concessional institutional credit to be arranged for the remaining amount.
Loans will be facilitated through the Dairy Development Department and the Tamil Nadu Backward Classes Economic Development Corporation. Under the mini-dairy scheme, beneficiaries purchasing two cows will receive a four per cent interest subsidy.
During 2025-26, the programme helped 1,625 farmers purchase 3,363 cows, though implementation fell short of the target because of delays in loan disbursal, approvals and price fixation.
The government is expected to shortly issue guidelines for procuring approved breeds, including Jersey crossbred and Holstein Friesian cattle.
Another measure proposed for the dairy sector is the supply of subsidised cattle feed to eligible milk producers living below the poverty line. Feed will be provided at Rs 2 per kg, with each animal eligible for three kg a day for 300 days.
The combined measures aim to expand the cooperative network, improve farmer incomes and restore Aavin’s procurement volumes while addressing quality concerns in the milk supply chain.
