Kumari Palany & Co

In TN, Aavin increases sweets prices - Fear of many Aavin retailers now?

Posted on: 17/Sep/2022 9:38:00 AM
From Friday onwards, Aavin has increased the prices of its sweets. This could lead to loss in the Aavin`s patronage now and this is the fear in the minds of many Aavin retailers now. The sources from Aavin have mentioned that the hike in the sweet prices would drive the customers to other private players.

It is noteworthy that Aavin has increased the prices of several sweets such as gulab jamun, rasagulla, khoa, dates khoa, Mysore pak and premium milk cake etc. Till now, no reason for the price hike has been provided by Aavin.

Mr. S.A. Ponnusamy, president of TN Milks Agent and Workers Welfare Association was unhappy regarding the price hike by Aavin now. He spoke about the need for the price hike of the sweets at this point of time when important festivals like Deepavali and Vijayadasami are fast approaching. He added that the procurement price of milk has not been increased from 2019.

It was brought out by Mr. Ponnusamy that he was unaware of the exact reason for the sudden price hike of the sweets now by Aavin. He explained that it was in July 2020, in March 2022 and in July 2022 Aavin had increased the prices of ghee, butter and curd.

Recently, the dairy development minister Mr. S.M. Naser spoke about how Aavin has planned to sell sweets worth around Rs 200 crores and it was not interested in any profits.

Using 35 litres of milk and 4/4 kilos of sugar Aavin produces 10.50 kg of milk khova. The cost of milk khova after calculating all the items was Rs 190 only. Aavin has increased the price of milk khova to Rs 500 per kilos.

It was mentioned by Mr. Shankar, vice president of the association, that it was middle class persons who patronised Aavin and that Aavin had failed to understand this.