Aavin Hikes Prices of Milk Products from Wednesday
Aavin has raised the prices of its dairy products — such as ghee, butter, buttermilk, milkshakes, and sweets by 10 percent to 25 percent — starting Wednesday (October 28).
The cooperative attributed the adjustment to escalating ingredient expenses, and the majority of products will experience a price hike of 10 percent to 15 percent. Nonetheless, the prices of milk stay unchanged.
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Reports indicate that the increase is anticipated to boost Aavin's yearly sales revenue from dairy products by 10 percent. The cooperative reported sales of Rs 683.25 crore in 2025-26, reflecting a 15 percent rise from the prior year.
As per a directive from Aavin MD S Sivarasu, the cost of a 100 ml pack of ghee has risen from Rs 80 to Rs 95, while the 200 ml pack has gone up from Rs 160 to Rs 180. The 500 ml pack will now be priced at Rs 400, increased from the previous Rs 365. A 200 ml pack of milkshake will now be priced at Rs 35, an increase from Rs 30, while a 200 ml pack of lassi is set at Rs 23, up from Rs 20. Probiotic lassi price will rise to Rs 35 from Rs 30.
The cost of a 200 ml buttermilk pack has risen from Rs 8 to Rs 10, whereas the PET bottle option will be priced at Rs 14, an increase from Rs 12. A 100 gm pack of table butter will now be priced at Rs 70, an increase from Rs 60, and the 500 gm pack will rise from Rs 280 to Rs 320. A 125 gm pack of gulab jamun will be priced at Rs 60, up from Rs 50 previously, while the 250 gm pack will now cost Rs 115, an increase from Rs 100. The cost of a 500 ml pack of curd has risen from Rs 35 to Rs 40.
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Prices of additional items, such as Mysore pak, nut halwa, milk peda, yoghurt, and chocolate lassi, have been adjusted as well. Aavin stated that its products will remain more affordable than those offered by private milk brands and other state cooperative federations, such as Amul and Nandini, even with the price rise.
The cooperative stated that the update was not meant to create profits and that over 90 percent of the extra income would be directed towards supporting milk producers. The initiative was described as targeting the enhancement of producers' earnings and reinforcing the cooperative milk procurement system in light of increasing production expenses, while guaranteeing a steady supply of quality products at fair prices.
The update comes after the TN government's choice to raise the milk procurement price by Rs 6 per litre starting September 1. Retail prices were not adjusted during that period.
The increase in procurement prices is anticipated to lead to an extra annual expense of Rs 720 crore for the TN government.
Aavin states that over 90 percent of the extra income from the price increase will be directed to the benefit of milk producers. Aavin milk sales have dropped noticeably in the past six months, as milk agents report a decrease of 10 to 15 percent. Agents indicated that the shortage has arisen due to Aavin not boosting its milk procurement.
As a result of the shortage, the quantity of Aavin milk boxes provided to stores has decreased. Consequently, milk packets are said to be selling out rapidly at numerous spots in Chennai during the morning hours. Consumers are struggling to buy Aavin milk in the needed amount. Families relying on Aavin milk are allegedly compelled to purchase private milk packets at elevated prices.
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Small grocery stores are also offering green Aavin milk packets for an extra Rs 2, pricing them at Rs 24 for a half-litre packet.