Aavin hikes ghee price to ₹700/kg — Tamil Nadu consumers hit

Aavin, the Tamil Nadu Cooperative Milk Producers’ Federation, has raised the retail price of its ghee, with a 1-litre jar now listed at ₹700/kg. This marks a significant increase at a time when many other dairy cooperatives and brands have either reduced or maintained prices.  Representatives said the hike reflects underlying production and input costs, which — in their view — could not be absorbed without affecting milk producers. Aavin officials have also highlighted that over 90% of its revenue from milk products goes directly to milk suppliers, making further price cuts difficult under current conditions. 

The move has stirred criticism and concern among consumers and retailers in Tamil Nadu. Many note that following the recent reduction in GST on dairy products — when several other cooperatives lowered prices — Aavin did not follow suit. Instead, it increased the base price and kept the Maximum Retail Price (MRP) unchanged at ₹700, which effectively neutralises any potential benefit from the tax cut.

Local consumer groups and small dairy-product retailers have argued that the increase undercuts affordability, particularly for low- and middle-income households. Several noted that while branded competitors have passed on benefits of the GST cut by lowering rates by ₹25–₹40, Aavin’s price hike has left consumers with fewer budget-friendly options.

Aavin, however, maintains that the higher price is necessary to sustain fair returns for milk producers — around 35 lakh litres of milk that the cooperative procures daily — and to maintain quality standards amid rising input costs. Still, the decision is likely to fuel debate over price regulation in public-sector dairies and the need for greater transparency in cost-breakups.

Source : Dairynews7x7 Dec 2nd 2025 Hindu and other sources