The core of the issue lies in a key piece of data journalism: a decision by the Goods and Services Tax (GST) Council in its 52nd meeting. The Council reduced the GST on pre-packaged and pre-labeled milk and curd from 12% to 5%. This substantial tax reduction has provided a clear opportunity for dairy companies to lower prices, and consumers are now expecting these benefits to be passed on to them in the form of a more affordable product.

A crucial element of the article is the contrast between Aavin and its private-sector competitors. The report notes that private dairy firms such as Hatsun and Dodla Dairy have already responded to the tax cut by reducing their prices by an impressive Rs 3 per litre. This action places Aavin under increased scrutiny and sets a benchmark for what consumers expect. The willingness of private players to act quickly on this policy change puts Aavin’s lack of action into sharp relief.

The resident’s letter to Aavin’s Managing Director is a powerful statement on agribusiness ethics and corporate social responsibility. Murugan argues that because Aavin is a government-run entity, it has a moral obligation to lead by example. He asserts that a public-sector firm should prioritize the well-being of its citizens by passing on the tax benefit, rather than absorbing it to increase profit margins. This argument frames Aavin’s decision not just as a business choice, but as a public duty.