Did Amul Join the Price Cut Trend After Mother Dairy?
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Synopsis
In a move to pass the benefits of GST rate cuts to consumers, Amul has slashed prices on over 700 products, following closely on the heels of Mother Dairy's similar announcement. This decision aims to stimulate demand and enhance the consumption of dairy products across India.
Key Takeaways
- Amul has cut prices on over 700 products.
- Price reductions aim to benefit consumers following GST rate changes.
- Effective date for new pricing is September 22.
- GCMMF expects increased consumption of dairy products.
- Mother Dairy has also reduced prices around the same time.
New Delhi, Sep 20 (NationPress) Just days after Mother Dairy announced a price reduction, Amul revealed on Saturday that it would lower the prices of over 700 of its products, passing on the advantages of the GST rate rationalization to consumers.
This announcement was made by the Gujarat Cooperative Milk Marketing Federation (GCMMF), which manages the Amul brand. The price cuts affect retail prices of a variety of items including Ultra-High Temperature (UHT) milk and other dairy products such as milk, ghee, butter, ice cream, as well as bakery and frozen snacks.
The new pricing will take effect from September 22.
According to a statement from GCMMF, the price adjustments will impact a wide range of product categories including butter, ghee, UHT milk, ice cream, cheese, paneer, chocolates, baked goods, frozen dairy and potato snacks, condensed milk, peanut spread, and malt-based beverages.
Specifically, Amul has reduced the price of a one-litre tetrapack of Amul Taaza Toned UHT Milk by 2.6% and Amul Gold Standardised UHT Milk by 3.6%.
Additionally, the price of butter (100 gm) is now set at Rs 58, down from Rs 62.
The cost of ghee has been lowered by Rs 40, bringing it to Rs 610 per litre.
The MRP for Amul processed cheese block (1kg) has been cut by Rs 30, now priced at Rs 545 per kg.
Similarly, frozen paneer (200 gm) will now be priced at Rs 95, down from Rs 99.
GCMMF expressed that this price reduction aims to increase the consumption of various dairy products, especially ice cream, cheese, and butter, given that per capita consumption in India remains very low, presenting significant growth potential.
Owned by 3.6 million farmers, GCMMF believes that this price drop will stimulate demand for its dairy products, potentially enhancing its turnover.
Previously, Mother Dairy also announced similar price reductions effective September 22.
With the new pricing structure, the entire product range falls under either the exempted category or the lowest slab of 5%.
Heritage Foods has also adjusted consumer prices following the GST rate changes, reducing the MRP of its long shelf-life UHT milk by Rs 3 per litre.
Point of View
I believe these price cuts reflect the industry's response to market conditions and consumer needs. Such moves by Amul and Mother Dairy not only make dairy products more accessible but also highlight the growing importance of GST rationalization in shaping pricing strategies within the sector.
NationPress
20/09/2025
Frequently Asked Questions
What products are included in Amul's price cut?
Amul's price cut includes a variety of products such as UHT milk, butter, ghee, ice cream, cheese, paneer, chocolates, and more.
When will the new prices take effect?
The new prices will be effective from September 22.
Why are these price cuts happening now?
These price cuts are a response to the recent GST rate rationalization, aimed at benefiting consumers.
How will this affect dairy consumption in India?
Amul believes that reducing prices will encourage higher consumption of dairy products, particularly where per capita consumption is currently low.
Is Mother Dairy also reducing prices?
Yes, Mother Dairy has also announced price cuts on its products effective September 22.
