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Cooperative Brand Avin Targets 1.5 Lakh Litres Daily Milk Increase with New Cow Scheme

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News Analysis IndiaReporter
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August 8, 2026
05:52 AM
Cooperative Brand Avin Targets 1.5 Lakh Litres Daily Milk Increase with New Cow Scheme

Chennai, August 8 – The Tamil Nadu government, under Chief Minister C. Joseph Vijay, has rolled out a strategic plan to inject 22,500 milking cows into the state’s cooperative dairy framework. The move is designed to counteract the recent decline in milk purchases by Avin, the state‑run dairy brand, and to raise the daily collection by at least 150,000 litres.

The programme will distribute 10,000 cows free of cost to eligible rural farmers in the 2026‑27 financial year. An additional 12,500 cows will be sourced through medium‑ and mini‑dairy initiatives, encouraging farmers to expand their herds and improve income.

Beneficiaries will be linked with village‑level primary dairy cooperative societies, ensuring a steady flow of milk to Avin. They will also receive fodder subsidies and other government assistance to support animal health and productivity.

Under the medium‑dairy plan, 2,500 cows will be allocated to 500 newly formed medium‑size dairy units, each receiving five cows. The remaining 10,000 cows will be distributed under the mini‑dairy scheme, covering 5,000 units with two cows each. Farmers will initially purchase three cows, tend to them for six months, and then become eligible for financial aid to acquire two more cows.

The state will provide a 25 percent capital subsidy on the project cost for medium‑dairy participants, with the balance financed through low‑interest institutional loans managed by the Dairy Development Department and the Tamil Nadu Backward Classes Economic Development Corporation. Mini‑dairy borrowers will enjoy a 4 percent interest subsidy.

In the 2025‑26 cycle, the initiative assisted 1,625 farmers in buying 3,363 cows, though delays in loan disbursement and price negotiations slowed full rollout. The government plans to issue guidelines soon for purchasing approved breeds such as Jersey cross‑breed and Holstein‑Friesian. A complementary proposal will supply subsidised animal feed at ₹2 per kilogram to dairy producers below the poverty line, providing three kilograms per animal each day for 300 days.

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