Aavin increases prices of ice-cream varieties

Chennai: As the temperature continues to soar in Tamil Nadu, Aavin, the state-owned milk dairy, has announced a hike in the retail prices of its popular ice cream varieties.

Effective from March 3, the prices of these ice creams will be increased by Rs 2 to Rs 5.

This decision has sparked reactions from various quarters, with Tamil Nadu Milk Agents Welfare Association President Ponnusamy expressing concerns over the price hike. Ponnusamy criticized the Minister of Dairying and the Executive Director of Aavin, urging them to focus on constructive activities rather than wasting tax money and the income of milk producers and agents.

Ponnusamy highlighted the need for Aavin’s management to actively engage in strategies to boost sales, especially in the face of competition from private milk companies offering reduced prices and incentives to consumers. He emphasized the importance of aligning management activities with market trends and consumer demands to ensure Aavin’s success during the upcoming summer season.

The decision to raise prices comes at a time when consumers are already facing economic challenges due to inflation and increased living costs. While Aavin may justify the price hike as necessary to cover rising production and operational costs, it risks alienating consumers and losing market share to competitors if not carefully managed.