GST effect: Aavin milk cooperative federation hikes product prices by 10-15 per cent

Sources said that the price of ghee, which has been under GST since 2020, was also hiked due to rise in production cost and higher butter prices.
After the price hike, the per-litre price of ghee (jar) has increased from Rs 535 to Rs 580, ghee (carton) from Rs 530 to Rs 575, and premium ghee (tin) from Rs 585 to Rs 630. (Photo | Ashwin Prasath)
After the price hike, the per-litre price of ghee (jar) has increased from Rs 535 to Rs 580, ghee (carton) from Rs 530 to Rs 575, and premium ghee (tin) from Rs 585 to Rs 630. (Photo | Ashwin Prasath)

CHENNAI: Aavin, Tamil Nadu's primary milk cooperative federation, has increased the price of its milk products - curd, lassi, buttermilk and ghee - by 10 per cent to 15 per cent on Thursday. The price hike comes three days after 5 per cent GST was slapped on milk products.

Sources said that the price of ghee, which has been under GST since 2020, was also hiked due to rise in production cost and higher butter prices. The price of Aavin products was last revised marginally on March 4.

After the hike, the per-litre price of ghee (jar) has increased from Rs 535 to Rs 580, ghee (carton) from Rs 530 to Rs 575, and premium ghee (tin) from Rs 585 to Rs 630. Similarly, price of 500ml packet of curd went up to Rs 35 from Rs 30, 400gm premium cup curd to Rs 50 from Rs 40, and one kg premium curd price went up to Rs 120 from Rs 100.

The 200ml of probiotic lassi is to be sold at Rs 30 (old price Rs 27) and buttermilk pet bottle (200ml) at Rs 12 (old price Rs 10). Aavin sources said even after the revision, the price of ghee is cheaper by Rs 60 to Rs 70 per litre compared to private brands. "Private players sell ghee for Rs 650 to Rs 670 per litre. Aavin ghee is still the cheapest," they said.

As per official data, Aavin procures 40 lakh litres of milk a day of which 27 lakh litres are sold to consumers and the rest is converted into milk products such ghee, butter, curd, buttermilk, ice cream and several others. The price of butter, last hiked on July 14, 2020, remains unchanged.

PMK demands rollback of hike

CHENNAI: PMK on Thursday condemned the price hike on Aavin products and demanded its rollback. In a series of tweets, PMK president Anbumani Ramadoss termed the price hike unfair and unacceptable. Prices of various Aavin products were hiked in March. People will not accept another price hike within four months.

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