Why is Anbumani Criticizing the Stalin Government for Aavin's Price Policies?
Click to start listening
Synopsis
In a scathing critique, PMK leader Dr Anbumani Ramadoss has called out the Tamil Nadu government for keeping Aavin dairy product prices high, despite a recent GST reduction. He argues that this exploitation particularly affects the poor and middle-class consumers, highlighting a concerning trend in pricing policy.
Key Takeaways
- Aavin's pricing policies are under scrutiny.
- GST reduction has not benefited consumers.
- Other dairies have lowered prices following GST cuts.
- Ramadoss claims Aavin's actions are exploitative.
- Consumers are facing hidden price hikes.
Chennai, Sep 22 (NationPress) PMK leader Dr Anbumani Ramadoss has charged the Tamil Nadu government with taking advantage of the impoverished by not lowering the prices of Aavin dairy products following the Central government's cut in Goods and Services Tax (GST) on milk-based goods. In a message posted on his X account, Dr Ramadoss noted that while both public and private sector dairies nationwide have transferred the benefits of GST reductions to customers, Aavin, which is Tamil Nadu's state-operated dairy federation, has persisted in selling its products at elevated prices.
He labeled this action as “condemnable and exploitative.” Ramadoss pointed out that sachet milk has never been subjected to GST. However, a 12% GST was levied on other milk-derived products like paneer, ghee, butter, flavored milk, and ice cream.
With the recent changes, the tax rate on these items has been lowered to 5%. Consequently, Gujarat's Amul, Karnataka's Nandini, and various private companies have announced price reductions ranging from Rs 25 to Rs 40 across their product ranges.
“Amul has decreased the prices of over 700 products, while Nandini has slashed rates for more than 15 items. Even private firms have reduced prices on several products. Yet, Aavin has opted not to lower its prices. By maintaining its retail prices after the GST deduction, it has effectively raised the base price of its goods,” Ramadoss stated.
The PMK leader indicated that this constitutes a covert price hike, imposing additional burdens on poor and middle-class consumers reliant on Aavin products. He reminded that since the DMK assumed power, Aavin has already increased prices four times.
As an example, he pointed out that the cost of one kilogram of ghee, which was Rs 515 in March 2022, has surged to Rs 700—a substantial 36% rise.
“Even private dairies have not escalated prices so sharply in such a brief period. When GST was launched, Aavin raised prices instantaneously. Now that the tax has been lowered, the government must reduce prices without hesitation,” he asserted.
Ramadoss urged the Tamil Nadu government to cease “exploiting consumers for profit” and to ensure that the benefits of GST reforms reach the populace.
Point of View
The concerns raised by Dr Anbumani Ramadoss about the pricing policies of Aavin warrant serious consideration. The implications for everyday consumers, particularly the economically disadvantaged, highlight a need for transparency and accountability in state-run enterprises.
NationPress
22/09/2025
Frequently Asked Questions
Why did Dr Anbumani Ramadoss criticize Aavin?
He criticized Aavin for not reducing prices after the GST cut, which he claims exploits consumers.
What is the GST reduction on dairy products?
The GST on milk-based products has been reduced from 12% to 5%.
How have other dairies responded to the GST cut?
Other dairies like Amul and Nandini have significantly reduced their prices.
What example did Ramadoss provide regarding price hikes?
He noted that the price of one kilogram of ghee has risen from Rs 515 to Rs 700.
What does Ramadoss want from the Tamil Nadu government?
He urges the government to lower Aavin's prices in line with the GST cuts.
