Aavin cuts ghee price by Rs 40/litre, festival discounts on paneer extended till 30 November

CHENNAI: State-owned dairy cooperative Aavin has announced a Rs 40 reduction in the price of ghee/litre while extending existing discounts on paneer until November 30, in line with the upcoming GST 2.0 changes and the festive season.

The Tamil Nadu Cooperative Milk Producers’ Federation, better known as Aavin, said it would maintain the current maximum retail price for all products but revise its price chart to reflect the new GST structure from September 22.

“In view of the ghee market and festival demand, Aavin will offer a discount on ghee products to boost sales through wholesale dealers and retailers from September 22 to November 30,” the federation said in a statement. A 1,000-ml carton of ghee will now cost Rs 650, down from Rs 690.

The cooperative highlighted that its butter is priced Rs 10 to Rs 50 lower than that of private and other cooperative dairies. Aavin sells 500 gm of butter at Rs 275. Paneer prices remain reduced: 200 gm at Rs 110 (down from Rs 120), and 500 gm at Rs 275 (down from Rs 300).

Aavin said that it has consistently kept milk and by-product prices lower than market rates to benefit consumers, noting that 90% of its sales revenue goes directly to milk producers. The federation recalled that the State government had cut milk prices by Rs 3 a litre in 2021, saving an estimated Rs 1,073 crore for 1.5 crore consumers.

The statement added that since 2023 the government has given Rs 635 crore in incentives to milk producers and provided Rs 675 crore in share capital to strengthen dairy infrastructure.