Tamil Nadu to Add 22,500 Milch Cows to Boost Small Dairy Farming

Business Aug 8, 2026

Chennai, Aug 8: The Tamil Nadu government plans to add 22,500 milch cows to the cooperative dairy network during 2026-27, aiming to expand small dairy farming, improve rural incomes and increase milk procurement by Aavin.

Tamil Nadu to Add 22,500 Milch Cows to Boost Small Dairy Farming

 Pic Credit: Pexel

The programme includes 10,000 cows for rural beneficiaries and another 12,500 cows through medium and mini dairy schemes. The initiative is expected to raise Aavin’s daily milk procurement by at least 1.5 lakh litres over the next few years.

The move comes as Aavin’s average daily milk procurement has fallen to around 31.5 lakh litres, from nearly 35 lakh litres a year earlier, with some farmers shifting to private dairies offering better prices.

Under the scheme, 500 medium dairy units will receive support to add five cows each, while another 5,000 mini dairy units will be supported with two cows each.

The government has proposed a 25 per cent capital subsidy for medium dairy units and a four per cent interest subsidy under the mini dairy programme. Beneficiaries will also be linked to village-level milk cooperatives, giving them access to Aavin’s procurement network.

The expansion is expected to help more rural households build small dairy businesses while creating a wider and more reliable milk supply base for Aavin. Subsidised cattle feed has also been proposed for eligible low-income milk producers.

The initiative is aimed at strengthening the state’s small dairy economy by combining livestock support, affordable credit, feed assistance and assured market access for milk producers.

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