Amul Cuts Prices on 700+ Products Following GST Reduction

The Gujarat Cooperative Milk Marketing Federation (GCMMF), the organization behind the Amul brand, announced on Saturday a price reduction on more than 700 of its products. The move, effective from September 22, aims to pass on the benefits of recent Goods and Services Tax (GST) rate cuts to consumers.

The price revisions will apply to a wide range of popular items, including butter, ghee, ice cream, cheese, and frozen snacks. The company stated this is a direct response to the GST rate reduction, and it will give the full benefit of the tax cut to its customers.

Among the specific price changes announced, the cost of a 100-gram pack of Amul butter will drop from ₹62 to ₹58. Ghee prices are also seeing a significant cut of ₹40, bringing a liter down to ₹610. Additionally, the price of a 1-kilogram Amul processed cheese block will be reduced by ₹30 to ₹545, and a 200-gram pack of frozen paneer will now cost ₹95, down from ₹99.

GCMMF, which is owned by 3.6 million farmers, believes that these lower prices will boost consumption across its dairy product categories. The organization highlighted that per capita consumption of products like ice cream, cheese, and butter is currently low in India, representing a significant growth opportunity. The company anticipates that the price cuts will lead to increased demand and, consequently, higher turnover for the federation.

The announcement from Amul follows a similar decision by competitor Mother Dairy, which had also previously announced price reductions effective from September 22.