Tamil Nadu's Aavin dairy reverses ghee price hike amid supply concerns

The Tamil Nadu government withdrew a revised pricing order for Aavin’s ghee products issued on July 14 after media attention highlighted the changes. The order had raised billing prices and wholesale margins for several ghee variants, but officials clarified that retail prices for consumers remained unchanged, stating: “Aavin continues to supply all variants of ghee to consumers at the existing retail prices. There has been no increase in the price of any ghee variant.” The withdrawal restored the previous billing prices, MRPs and dealer margins.

At the same time, Aavin faces pressure on its milk procurement as private dairies offer higher rates, up to ₹50 per litre compared with Aavin’s ₹34 per litre. Farmers are shifting to private buyers or selling directly to households for ₹60‑₹62 per litre, raising concerns of a potential milk supply shortage in Tamil Nadu. Farmer groups have urged the state government to raise Aavin’s procurement price and provide subsidies and support to sustain dairy farming.