Even as leading public sector dairy cooperatives Amul and Karnataka Milk Federation’s Nandini announced price reductions following the GST cut on dairy products from 12% to 5%, Tamil Nadu’s Aavin will continue to sell milk products at existing prices when the revised GST comes into force on 22 September 2025.
Amul, Nandini, and several private brands have reportedly reduced prices of ghee, paneer, butter, ice cream, milk chocolates, and other products by Rs 25 to Rs 40, citing the GST cut.
Senior officials from the Tamil Nadu Cooperative Milk Producers Federation (TNCMPF), which owns the Aavin brand, told reporters that since Aavin calculates its final prices inclusive of GST, a formal directive from the state government is necessary before any price revision. As of Sunday night, no such directive had been issued.
A franchise retail outlet proprietor said that with the GST reduction, Aavin had adjusted the base price upward to keep the maximum retail price unchanged, effectively resulting in an increase in Aavin product prices from Monday.
During visits to Aavin outlets in Ambattur, Anna Nagar, Adyar, Korattur, and Thiruvanmiyur on Sunday, TNIE reported that staff at the outlets confirmed no instructions had been issued to lower product prices. An employee at the Ambattur outlet said that so far, they had not received any order to reduce prices of ghee or butter.
Aavin reportedly procures about 35 lakh litres of milk daily, of which 8-9 lakh litres are converted into value-added products. With the revised GST rates taking effect from Monday, Amul and Nandini have cut the per litre price of ghee from Rs 650 to Rs 610 and made corresponding reductions across other items. While Nandini has reduced prices for about 15 products, Amul has reportedly slashed prices across more than 700 dairy products.
Some Aavin customers expressed dissatisfaction over the decision to maintain prices. S Rajesh, a resident of Mullai Nagar, Ambattur, told reporters that when private brands cut ghee and butter prices by Rs 20-Rs 30 per kg, it was unfair for Aavin to continue selling at higher rates. He added that with demand rising during festivals, Aavin should pass on the GST benefit to consumers.
Aavin generates annual milk product sales worth approximately Rs 600 crore, with sales of Rs 126 crore recorded during last year’s Deepavali season.
While Amul and Nandini have proportionately reduced prices following the GST cut from 12% to 5%, Aavin continues to sell ghee and other products at the same maximum retail price.
(With inputs from The New Indian Express)
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