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Summary:

Tamil Nadu’s Aavin, a major milk producer, has increased the price of ghee (clarified butter) after ending a festive season discount. The price of a kilo of ghee in a plastic container has risen to ₹700. The reason cited by Aavin is the increase in butter prices, attributed to decreased milk production due to recent rains. This price hike has drawn criticism from consumer activists and milk dealer associations who point out that Aavin failed to pass on GST reduction benefits to consumers previously, and that the quality of Aavin ghee has deteriorated. Concerns are particularly high due to the upcoming Ayyappa season when many, especially the poor, purchase ghee for religious offerings.

News Article:

Aavin Hikes Ghee Prices, Drawing Consumer Ire

Chennai – December 2, 2025 – Tamil Nadu’s leading milk producer, Aavin, has raised the price of ghee, effective immediately, prompting criticism from consumer groups and milk dealer associations. A kilo of ghee in a plastic container will now retail for ₹700, an increase implemented after the expiration of a festive season discount.

Aavin sources attribute the price hike to a surge in butter prices, citing reduced milk production stemming from recent heavy rains. “Due to rain, milk production has been affected that has also led to an increase in butter prices,” said a source within Aavin. The move follows a similar price increase by Karnataka Milk Federation’s Nandini, although Aavin’s price remains marginally lower.

However, the price hike has been met with condemnation. S.A. Ponnusamy of the Tamil Nadu Milk Dealers and Employees Welfare Association criticized Aavin for failing to extend the festive pricing through the Christmas and Pongal seasons and not having passed on previous GST rollback benefits to customers.

Consumer activist T. Sadagopan voiced concerns about the quality of Aavin ghee, claiming it lacks its former aroma. He further highlighted the impact on devotees during the upcoming Ayyappa season, a time when many, particularly those from lower-income backgrounds, purchase ghee for religious rituals. “Aavin should reconsider this hike,” he urged. The price increase and quality concerns are expected to put pressure on Aavin in the coming weeks.

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