Tamil Nadu's state-owned dairy cooperative, Aavin, has increased the prices of 63 dairy products, including ghee, butter, curd, buttermilk, milkshakes and traditional sweets, ahead of the Diwali festival. The revised prices came into effect on October 28, 2026.
According to India Today, the cooperative cited rising raw material costs, milk procurement expenses and other associated operating costs as the reasons behind the revision. This marks the first price increase for Aavin products under Chief Minister C. Joseph Vijay's TVK-led government.
Ghee, Butter and Dairy Products Become Costlier
Several popular Aavin products have recorded price increases, affecting both household consumption and festive purchases.
Key revised prices include:
- Ghee (100 ml): Increased from ₹80 to ₹95.
- Ghee (200 ml): Increased from ₹160 to ₹180.
- Ghee (500 ml): Increased from ₹365 to ₹400.
- Butter (100 g): Increased from ₹60 to ₹70.
- Curd (500 ml): Increased from ₹35 to ₹40.
- Buttermilk (200 ml): Increased from ₹8 to ₹10.
- Milkshake (200 ml): Increased from ₹30 to ₹35.
- Lassi (200 ml): Increased from ₹20 to ₹23.
Prices of several traditional sweets have also risen. The 250 g pack of Mysore pak, for example, has increased from ₹140 to ₹160, while the 250 g pack of gulab jamun has risen from ₹100 to ₹115.
Rising Costs Drive Price Revision
The price revision highlights the cost pressures facing dairy cooperatives as they manage milk procurement, ingredients, processing, packaging and distribution.
For Aavin, adjusting the prices of value-added dairy products offers a way to respond to rising expenses while maintaining its broader milk supply operations.
The timing is also significant, as demand for ghee, butter and traditional dairy-based sweets typically increases during festive periods.
Milk Prices Remain Unchanged
Despite the price increases across its dairy product portfolio, Aavin has not raised the retail prices of its regular packaged milk.
The decision follows an earlier increase in milk procurement prices intended to improve returns for dairy farmers and encourage greater milk supplies to the cooperative.
This distinction is important: higher prices for value-added products do not automatically mean higher retail prices for everyday milk.
Implications for the Dairy Industry
Aavin's latest revision illustrates the balancing act faced by dairy cooperatives: managing rising production costs, maintaining affordable products for consumers and supporting milk producers.
For the wider Indian dairy industry, the development highlights the importance of value-added products such as ghee, butter, curd and traditional sweets in managing costs and generating revenue.
However, higher retail prices may also affect consumer purchasing decisions, particularly during periods of elevated household expenditure.
Dairy cooperatives must balance farmer welfare, cost recovery and consumer affordability to maintain a sustainable dairy value chain.
Source: Read full story here 28 Oct, 2026 Edited and Reported by
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