Anbumani Hits Out At Stalin Govt Over Aavin's Failure To Cut Prices After GST Reduction

(MENAFN- IANS) Chennai, Sep 22 (IANS) PMK leader Dr Anbumani Ramadoss has accused the Tamil Nadu government of exploiting the poor by refusing to reduce the prices of Aavin dairy products despite the Centre's reduction in Goods and Services Tax (GST) on milk-based items.

In a post on his X handle, Dr Ramadoss said that while both public and private sector dairies across the country have passed on the benefits of GST cuts to consumers, Aavin -- Tamil Nadu's state-run dairy federation -- has continued to sell products at higher rates.

He called the move“condemnable and exploitative”. Ramadoss explained that sachet milk has never been brought under GST. However, a 12 per cent GST was imposed on other milk-based products such as paneer, ghee, butter, flavoured milk, and ice cream.

With the latest reforms, the tax rate on these products has been reduced to 5 per cent. As a result, Gujarat's Amul, Karnataka's Nandini, and several private players announced price cuts ranging from Rs 25 to Rs 40 across their product lines.

“Amul has slashed the prices of over 700 products, while Nandini has reduced rates for more than 15 items. Even private companies have cut prices on several products. Yet, Aavin has chosen not to reduce its prices. Instead, by keeping the retail price unchanged after the GST cut, it has effectively increased the base price of its products,” Ramadoss alleged.

The PMK leader said this amounted to a hidden price hike, burdening poor and middle-class consumers who depend on Aavin products. He reminded that since the DMK came to power, Aavin has already hiked prices four times.

Citing an example, he noted that the price of one kilogram of ghee, which stood at Rs 515 in March 2022, has now risen to Rs 700 -- a steep 36 per cent increase.

“Even private dairies have not raised prices so aggressively in such a short period. When GST was introduced, Aavin increased prices immediately. Now that the tax has been reduced, the government must cut prices without delay,” he said.

Ramadoss urged the Tamil Nadu government to stop“exploiting consumers for profit” and ensure that the benefits of GST reforms are passed on to the people.

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