Should Aavin Reduce MRPs After GST Cut in Tamil Nadu?

Synopsis
Key Takeaways
- Consumer Advocacy: Local residents are demanding fair pricing from state-run enterprises.
- GST Impact: The reduction in GST should lead to lower prices for essential goods.
- Transparency Matters: Aavin is urged to adopt a clear pricing strategy that benefits consumers.
- Long-term Benefits: Permanent price cuts are preferred over temporary discounts.
- Broader Sentiment: Consumers are united in their call for real-time pricing adjustments.
In Ambattur, Tamil Nadu, on September 23 (NationPress), a local consumer has appealed to Aavin, the state's dairy federation, to ensure that the benefits from the recent Goods and Services Tax (GST) reduction are directly reflected in the prices for consumers by adjusting the Maximum Retail Price (MRP) of its products, instead of implementing temporary discount offers.
Venkatesh, a loyal patron of Aavin's products, expressed gratitude to the central government for the reduction in GST rates on essential commodities. However, he emphasized that this initiative would be genuinely impactful only if organizations like Aavin amend their MRP accordingly.
He remarked that although Aavin has introduced discounts on certain items following the GST reduction, these promotions are not permanent and could be withdrawn at any moment. “Aavin should implement a permanent reduction in the MRP across all its products, allowing consumers to reap consistent benefits,” he stated.
Venkatesh firmly asserted that the advantages of the GST reduction should be apparent in the pricing of everyday goods, particularly dairy products. “The middle class stands to gain only if the price drop is substantial and enduring,” he stressed.
He specifically called for a rationalization of prices for essential items like ghee, butter, paneer, and cheese. Although there has been a slight dip in milk prices, Venkatesh warned against raising the costs of other dairy products to balance this decrease. “If milk becomes cheaper but other essentials increase in price, it negates the benefit,” he highlighted.
Emphasizing the need for transparency, Venkatesh urged Aavin to adopt a more consumer-friendly pricing strategy and ensure that the advantages of GST reductions are communicated in a fair and lasting manner.
His plea resonates with a larger group of consumers who are seeking immediate adjustments in pricing as the economy adapts to the GST changes.
Previously, the BJP also criticized Aavin, stating that Tamil Nadu’s state-run dairy company failed to extend the recently implemented GST benefits to consumers. Pattali Makkal Katchi (PMK) leader Anbumani Ramadoss had similarly condemned the DMK government for delaying the necessary revisions.