Tamil Nadu Raises Milk Procurement Price and Unveils Infrastructure Plan

Chief Minister C. Joseph Vijay announced a ₹3 per litre increase in the procurement price of milk on August 31, 2026, raising the rate from ₹41 to ₹44 per litre. This represents the second price hike in August, following an earlier increase from ₹38 to ₹41 on August 19. The measure is intended to provide financial relief to approximately 3.15 lakh dairy farmers struggling with the rising costs of labor, veterinary care, fodder, and cattle feed.

The state government will compensate Aavin for the additional costs, which are estimated to reach ₹60 crore monthly or ₹720 crore annually. Vijay stated, "The government will compensate Aavin for the additional amount."

In addition to dairy relief, the Chief Minister unveiled a series of large-scale infrastructure investments. These include the ₹33,066 crore Tamil Nadu Transmission Improvement Scheme and a ₹20,800 crore Super Critical Thermal Power Station in Tuticorin. Other projects include a ₹175 crore Semiconductor and Electronics Manufacturing Park in Kanchipuram, a ₹400-crore FinTech Hub in Coimbatore, and a multi-modal logistics hub in the Tiruchirapalli region.