Aavin on Thursday effected an increase in the price of curd, lassi, buttermilk and other products following the recent inclusion of these products under the Goods and Services Tax (GST). The milk major had been waiting for a few days hoping for some relief from the GST Council for cooperatives, which had all sought exemption.
A 100 ml cup of curd will now cost ₹12 in place of ₹10. The price of a 500 ml packet of curd has been increased from ₹30 to ₹35. Post the increase, a sachet of 200 ml of butter milk will cost ₹8 in place of ₹7. The prices of different kinds of lassi, including probiotic (an increase by ₹3 per cup); mango and chocolate has been increased by ₹2 per cup.
The Tamil Nadu Cooperative Milk Producers Federation, whose popular brand is Aavin, currently pays ₹2 crore per month as GST for various products, including ghee, butter and flavoured milk. This increase will add to the cooperative’s burden by another ₹50 lakh, said sources.
Milk producers said that the State government should subsidise the GST being paid by Aavin. “The milk major reduced milk prices by ₹3 a litre after the government made the announcement. Now, it should help Aavin,” said Suresh, a producer.
Along with the increase in the price of milk-based products due to GST, Aavin has also increased the price of ghee. “Our price is lesser than that of Amul. A litre of Aavin ghee, which was earlier priced at ₹535, is now ₹580. The maximum price in private brands is ₹764 per litre. Furnace oil, which is used to melt butter has gone up from ₹45/litre to ₹85/litre. Transportation charges and the price of the pet jars too have increased, leaving us with no other option,” explained another source.
