Tamil Nadu Chief Minister also cites rise in cost of fodder, transportation.

Chief Minister Edappadi K. Palaniswami on Sunday said the milk procurement price had to be increased, considering the production cost and the welfare of dairy farmers.
“During (the last) Assembly session, Opposition leader [M.K. Stalin] urged the government to accept the request of the dairy farmers and increase the milk procurement price. During the same session, I said that the procurement price and the selling price will be increased, considering the farmers’ request. The procurement price has not been revised in almost five years. The cost of milk production has increased due to an increase in the cost of fodder and transportation. Hence, the cost of procurement and the selling price (of milk) had to be raised,” he said.
Mr. Palaniswami said the procurement price of cow milk had been increased by ₹6 and that of buffalo milk by ₹4, and the selling price was increased by ₹6.
Regarding the farmers’ request for 50% subsidy on Aavin fodder, Mr. Palaniswami said, “Currently, most of the milk producer unions are running on losses, and only a few dairies are running profitably. The cost of transportation has increased due to the hike in fuel prices. Hence, the procurement price has been revised, considering the welfare of nearly 4.6 lakh farmers.”
Mr. Palaniswami added that when compared to neighbouring States, the procurement price of milk was higher in Tamil Nadu.
Regarding the effect the hike would have on consumers, Mr. Palaniswami said, “The price is being revised only after five years. Over the years, there has been inflation. The salaries of professionals and labourers have also increased.”
Mettur water
On the farmers’ request for increasing the outflow of water from the Mettur dam, Mr. Palaniswami said that presently, only seedlings were being prepared, and the delta region was receiving better rain. The outflow may be increased after a week, depending on the farmers’ demand, he said.
Rejecting the criticism that there was a lack of transparency in gathering public opinion on the Draft National Education Policy, Mr. Palaniswami said everything was done transparently .

This is on top of an investment of €18,060 for extra soiled water storage and additional calf housing over the past ten years, based on a typical 100 cow dairy farm.

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