Aavin retailers fear patronage loss after sweets price hike

VELLORE: Aavin’s move to increase prices of its sweets with effect from Friday has incensed retailers who feel that the move will drive consumers to private players, sources said.

Aavin increased the prices of gulab jamun, rasgulla, khoa, Dates khoa, sweet less khoa, milk peda, Mysorepak and premium milk cake without assigning any reason.

TN Milk Agents and Workers Welfare Association president SA Ponnusamy wondered at the need for the hike just before the onset of Ayudha Pooja and Deepavali when the procurement price of milk had not been raised after 2019.

“We do not understand the rationale behind the hike, as the prices of butter, ghee and curd were already increased in July 2020 and in March and July 2022.” He also highlighted the recent statement of Dairy Development Minister SM Naser, who announcing the sale of sweets for the festive season stated that it was planned to sell Rs 200 crore sweets and that Aavin being a cooperative venture was not aiming at profits.

Elaborating, Ponnusamy said, “35 litres milk and 4.50 kilos sugar produced 10.50 kg milk khoa whose cost price after calculating all items was only around Rs 190. But now the price of this product has been hiked to Rs 500 per kilo, which was more than the Rs 300 charged for the famous Srivilliputhur milk khoa.”

Association vice president VM Sankar told DT Next “Aavin seems to have failed to understand that it is the middle class who patronise Aavin. Affluent customers opt for costlier brands. With the middle class already reeling under various price hikes, now is hit by the high prices of sweets and that too on the eve of major festivals like Ayudha Pooja and Deepavali. It is likely to drive them away from Aavin brand.”

However, Vellore Aavin officials refused to comment on sweets price increase.

TN Milk Agents and Workers Welfare Association president SA Ponnusamy wondered at the need for the hike just before the onset of Ayudha Pooja and Deepavali