Aavin, on Thursday, September 14, 2023, effected an increase in prices of ghee and butter, which are popular products from its stable.
While ghee comes in 14 different packs and butter in two variants of cooking and two in the salted table kind, the maximum retail prices of all these items have been hiked. A 500 ml jar of ghee, which was ₹315 will now be ₹365. Similarly, 500 gram of cooking butter which was ₹260 is now ₹275. The same quantity of table butter is priced at ₹280 now.
Official sources explained that the product prices were hiked to ensure that they reached the consumers properly. “Since Aavin products are the lowest priced in the market diversion was happening. To prevent that, the hike was effected. We are still the lowest even after the hike,” the source said.
S.A. Ponnusamy of the Tamil Nadu Milk Dealers Employees Welfare Association, said that the benefits of this and recent hikes must be passed on to milk-pouring farmers. “Despite the flush season Aavin has been getting very less milk from its farmer-members. The reason for this is very low procurement prices when compared to private dairies. Unless Aavin increases the procurement rates, more farmers will move to private dairies,” he said.
Consumer activist T. Sadagopan said that the hike would only succeed in pushing these popular products further away from the reach of the common man.
“The government can instead increase milk prices by a few Rupees but still ensure that it is lesser than private brands. This will keep farmers, consumers and the organisation happy,” he said.
