The village milk society tests every delivery of milk and pays into your bank account. You can also sell to a private dairy, or straight to homes and shops, which needs FSSAI registration. This page explains how milk is priced, Tamil Nadu's official price, and how to sell heifers, calves, bulls and dung.
Sell to your village milk society
Tamil Nadu had 8,851 village milk producers' cooperative societies working on 30 June 2026, under district unions and the state federation, Aavin (Dairy Policy Note 2026-27).
- Who can join: any dairy farmer aged 18 or over who lives in the society's area, owns milch animals and will supply milk through it. Women's societies take only women of the area.
- Joining: members buy a share and pay an entrance fee under the society's rules (NDDB). The amounts are not published, so ask the secretary.
- Every delivery is tested: bring your milk morning and evening in a clean steel can. It is measured and tested for fat and SNF (solids-not-fat). Tamil Nadu has put 6,980 milk analysers in its societies to test each lot on the spot and give a digital receipt (Dairy Policy Note 2026-27).
- More than the milk money: societies also supply cattle feed, mineral mixture and fodder seed, and arrange AI, vet care, insurance and Kisan Credit Card loans. Societies that make a profit share some of it with members as a bonus; some pay it at Deepavali or Pongal.
- No society nearby? At least 25 milk producers of a village can apply to the district's Deputy Registrar (Dairying) to start one (Dairy Policy Note 2026-27).
Tamil Nadu's milk price
In August 2026 the Tamil Nadu government raised the price milk societies pay for milk with 4.3% fat and 8.2% SNF, counting the state incentive: to ₹41 a litre from 19 August 2026 (TN government, 19 August 2026, Dairy Policy Note 2026-27). On 31 August 2026 it announced a further rise to ₹44 a litre, and said it will pay Aavin the extra cost (TN government, 31 August 2026).
| Date | Price a litre, for milk with 4.3% fat and 8.2% SNF, with the state incentive |
|---|---|
| From 19 August 2026 | ₹41, up from ₹38: ₹1 more through the society, and the state incentive up from ₹3 to ₹5 |
| Announced on 31 August 2026 | ₹44, a further ₹3; the statement gives no start date |
- Your own rate: your society pays by the fat and SNF of your own milk, so ask the secretary for the rate chart and check your slips. Milk with more fat and SNF, such as buffalo milk, earns more per litre; thinner milk earns less.
- When you are paid: the money comes into your bank account every 7, 10 or 15 days; ask your society which (Dairy Policy Note 2025-26).
- Other states: in Karnataka, Kerala, Andhra Pradesh and Telangana, the state milk federations and their societies set their own prices; the central government says milk prices are decided by cooperative and private dairies from their costs and the market (PIB). We found no official price a litre on their pages on 25 October 2026, so ask your society for its rate chart. For state incentives, see other states.
Private dairies and collectors
- Private dairies and milk collectors also buy milk, and each sets its own price (PIB).
- Before you sell to one, ask how they test fat and SNF, how often they pay, whether into your bank account, and whether you get a slip for every delivery. Compare their rate for your milk with your society's rate chart.
- Count what the society gives besides the price: feed, AI, vet care, insurance and loans for members.
- The FSSAI exemption below covers only society members who sell all their milk to the society. If you sell outside it, you need registration.
Selling milk yourself: FSSAI registration
- Exempt: a registered member of a dairy cooperative society who sells all their milk to the society needs no FSSAI registration (FSSAI rules).
- Everyone else who sells milk, to homes, tea shops, hotels or a private dairy, is a food business and needs at least basic FSSAI registration.
- Since 1 April 2026, basic registration covers food businesses with a yearly turnover of up to ₹1.5 crore (FSSAI order, 13 March 2026). The fee is ₹100 a year (FoSCoS), and a registration issued from 1 April 2026 does not need renewing (FSSAI FAQ).
- How to apply: online on FSSAI's FoSCoS portal, or ask your district's Food Safety Officer.
- Label the can: milk sold without boiling or other heat treatment must be named on the container with the word "Raw", such as "Raw cow milk" (FSSAI standards).
Curd, ghee and paneer
- Making curd, ghee, paneer or sweets to sell always needs FSSAI registration, or a licence for a large unit. The exemption covers only milk sold to a cooperative (FSSAI rules).
- Dairy is a high-risk food, so a registered dairy business must keep to the hygiene, safety and testing rules (FSSAI FAQ).
- Buffalo milk, with more fat, is preferred for butter and ghee (TNAU).
Never add water
The law sets one minimum for milk sold anywhere in India, the same in every state (FSSAI standards):
| Milk | Fat, at least | SNF, at least |
|---|---|---|
| Cow milk | 3.2% | 8.3% |
| Buffalo milk | 5.0% | 9.0% |
- Water lowers both fat and SNF, and the society's test shows it, so your rate falls. Aavin also has machines at its bulk milk coolers to detect adulteration (Dairy Policy Note 2026-27).
- Aavin's 4.3% fat and 8.2% SNF is the reference milk for its price, not the legal minimum.
- Milk from a cow your vet is treating stays out of the can as long as the vet says.
- Keep milk clean and cool, and take it to the society quickly: see Milking cows and buffaloes: clean milk and mastitis checks.
Keep your milk slips
- Keep every slip or SMS. It shows the litres, fat and SNF of each delivery, and it is your proof if a payment is short.
- Check the total against the money in your bank account each time you are paid.
- Tamil Nadu's societies give a digital receipt for each lot from their milk analysers, and receipts by SMS and app are planned (Dairy Policy Note 2026-27).
- If the litres, fat or SNF on a slip look wrong, ask the secretary the same day, with the slip in hand.
Selling heifers, calves and bulls
Heifers, calves and young bulls you do not need can go to other farmers.
- Free ads: on Kattutharai you can post a free ad with photos and a video. Buyers call or chat with you directly, and there is no commission.
- What to put in the ad: breed, age, and for a heifer or cow whether she is pregnant and the insemination date; her milk, or her mother's, in litres a day from your records; vaccination dates; the ear tag number; and your village and district.
- Papers: give the buyer the animal's health card, and ask the vet or vaccinator to record the new owner against the 12-digit ear tag (PIB). If the animal is insured, the policy moves to the buyer (NLM guidelines).
- Payment and transport: never pay a "buyer" any fee, and let the animal go only when the money is in your account. See paying safely and moving cattle.
The box below shows asking prices in farmers' cow ads on Kattutharai.
On Kattutharai, 1 Nov 2026
Asking prices in farmers’ ads, not market prices.
Sell your cows and bulls on Kattutharai
Post a free ad with photos and a short video. Buyers near you call or chat with you directly. No commission.
Selling dung
- Dung is worth money as manure for your own fields or for sale, and as compost or biogas.
- Sell cow dung or dung cakes with a free ad on Kattutharai, or see cow dung ads near you.
- Ask your agriculture or rural development office which compost-pit and biogas schemes are open this year.
Common mistakes
- Adding water, or pouring in milk from a cow under treatment.
- Throwing away milk slips, or never checking the bank credits.
- Not asking for the rate chart, so you never know why your rate changes.
- Selling curd or ghee without FSSAI registration.
- Letting an animal go before the money is in your account.
Frequently asked questions
Why is my rate lower than the price the government announced?
The announced price is for milk with 4.3% fat and 8.2% SNF. If your milk has less fat or SNF, your rate is lower; if it has more, as buffalo milk usually does, your rate is higher. Ask the secretary for the rate chart.
How often does the society pay?
Every 7, 10 or 15 days, straight into your bank account. Ask your society which.
Do I need FSSAI registration to sell milk?
Not if you are a registered society member who sells all your milk to the society. Otherwise yes: basic registration, at ₹100 a year, covers a turnover of up to ₹1.5 crore.
Can I sell curd or ghee from home?
Yes, once you have FSSAI registration. Making milk products to sell always needs it.
Next
Read Dairy farming costs and income: a worked example to work out your cost per litre, and Milking cows and buffaloes: clean milk and mastitis checks for clean milk. To sell a heifer, calf or bull, post a free ad.