No price cut, announces Aavin; offers Rs 50 festive discount on one kg ghee

However, as part of its festival season offers, the dairy federation has offered a discount of Rs 40-Rs 50 per kg on ghee, effective from September 22 to November 30.

Ghee and other dairy products stacked at an Aavin outlet. Photo | Express

CHENNAI: Citing its financial position, Aavin announced on Monday that it would continue selling its products at the existing market price, which it claimed is the lowest in the industry. In its statement, Aavin noted that 90% of its revenue is shared with the dairy farmers supplying milk. It also highlighted that the government has provided Rs 635 crore to the federation and district milk producers’ cooperative societies over the past four years.

However, as part of its festival season offers, the dairy federation has offered a discount of Rs 40-Rs 50 per kg on ghee, effective from September 22 to November 30. The ongoing discount on paneer will also continue till November 30, with 500g priced at Rs 275 against the MRP of Rs 300, and 200g sold at Rs 110 instead of Rs 120, revealed an official order issued by Aavin managing director A Annadurai dated September 19.

Similarly, the discount on UHT (Ultra-High Temperature) milk remains in force till November 30, with the 150ml pack priced at Rs 10 compared to the MRP of Rs 12, the order added.

Interestingly, Aavin has circulated this order only to its outlets and sales agencies, without issuing any press release to inform consumers.

The 56th GST Council had reduced tax on most dairy products from 12% to 5%, removed the 5% GST on paneer and UHT milk, and slashed GST on ice creams from 18% to 5%, effective from Monday.

A report by the TNIE on Monday highlighted that while major dairy cooperatives like Amul and Nandini, along with several private brands, reduced their product prices following the GST revision, Aavin chose not to pass on the benefit to consumers. Instead, it continues selling products at the old MRP by raising base price.

PMK president Anbumani Ramadoss and AMMK general secretary T T V Dhinakaran on Monday criticised Aavin’s decision.

Anbumani termed it “daylight robbery”, and citing an example, he said that one kg of ghee priced at Rs 700 earlier carried a base price of Rs 625 and Rs 75 GST. After the GST cut, it should have been sold at Rs 656, but Aavin has raised the base price to Rs 669 and continued to charge Rs 700.

Echoing the same sentiment, Dhinakaran urged the state government to immediately enforce the revised GST rates and ensure the benefits reach consumers without further delay.