CHENNAI: Aiming to cash in on the demand for sweets ahead of Deepavali and Ayutha Pooja festivals, the Tamil Nadu Cooperative Milk Producers Federation on Friday increased the prices of Aavin sweets by 20% to 25%. The revised price of Aavin sweets — gulab jamun, rasagulla, khoa, dates khoa, sweetless khoa, milk peda, mysorepa and premium milk cake — came into effect on Friday.
“The price hike was inevitable as the cost of ingredients has been increased. We are expecting an increase of 10% to 15% in revenue towards to sale of milk products,” said Aavin’s Managing Director and Milk Commissioner N Subbaiah.A target of `100 crore sales of sweets was set for the federation and `100 crore for district unions, added Subbaiah.
Official sources said, compared to the market price, the cost of Aavin sweets is cheaper by 10% to 15% even after the price revision. On July 21, Aavin increased the prices of ghee, premium ghee, packet curd, probiotic lassi and buttermilk by 10% to 15%.
The apex body of cooperative societies sold 15 tonnes of sweets last year (2021), recording a turnover of `80 and targeted to enhance the sale of sweets to 50 tonnes worth `200 crore.Aavin also decided to expand the sale of sweets outside Chennai as well. Aavin was understood to have been under pressure to enhance its revenue to settle dairy farmers’ dues at the earliest as the latter started showing reluctance in many districts to supply milk to Aavin.
Aavin’s procurement price was short by `14 to `16 compared to the price given by private milk companies.
However, officials from Aavin maintained that there was no drop in milk procurement from any district union.“We have been receiving `40 to 41 lakh litres of milk every day. Increasing the procurement and selling price is a policy decision of the government,” added Subbaiah.